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Newmont Corporation (NEM) Outpaces Stock Market Gains: What You Should Know

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Newmont Corporation (NEM - Free Report) closed at $43.04 in the latest trading session, marking a +0.89% move from the prior day. This move outpaced the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.14%.

Investors will be hoping for strength from Newmont Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.33, down 28.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.84 billion, down 7.23% from the year-ago period.

NEM's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $12.22 billion. These results would represent year-over-year changes of +35.14% and +2.58%, respectively.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 3.22% higher within the past month. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Newmont Corporation's current valuation metrics, including its Forward P/E ratio of 17.08. Its industry sports an average Forward P/E of 9.06, so we one might conclude that Newmont Corporation is trading at a premium comparatively.

Also, we should mention that NEM has a PEG ratio of 1.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NEM's industry had an average PEG ratio of 2.04 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 184, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.


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