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Newmont Corporation (NEM) Gains But Lags Market: What You Should Know
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Newmont Corporation (NEM - Free Report) closed at $49.02 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.
Prior to today's trading, shares of the gold and copper miner had gained 11.15% over the past month. This has outpaced the Basic Materials sector's gain of 0.43% and the S&P 500's gain of 2.28% in that time.
Investors will be hoping for strength from Newmont Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.29, down 57.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, down 5.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.24 per share and revenue of $11.9 billion, which would represent changes of +21.08% and -0.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Newmont Corporation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.4% lower. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 21.79 right now. For comparison, its industry has an average Forward P/E of 10.64, which means Newmont Corporation is trading at a premium to the group.
Meanwhile, NEM's PEG ratio is currently 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Newmont Corporation (NEM) Gains But Lags Market: What You Should Know
Newmont Corporation (NEM - Free Report) closed at $49.02 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 1.44% gain on the day. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.
Prior to today's trading, shares of the gold and copper miner had gained 11.15% over the past month. This has outpaced the Basic Materials sector's gain of 0.43% and the S&P 500's gain of 2.28% in that time.
Investors will be hoping for strength from Newmont Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.29, down 57.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.85 billion, down 5.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.24 per share and revenue of $11.9 billion, which would represent changes of +21.08% and -0.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Newmont Corporation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.4% lower. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 21.79 right now. For comparison, its industry has an average Forward P/E of 10.64, which means Newmont Corporation is trading at a premium to the group.
Meanwhile, NEM's PEG ratio is currently 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.