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Newmont Corporation (NEM) Stock Slides as Market Rises: Facts to Know Before You Trade

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Newmont Corporation (NEM - Free Report) closed at $40.23 in the latest trading session, marking a -0.27% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.

The gold and copper miner's shares have seen an increase of 3.22% over the last month, not keeping up with the Basic Materials sector's gain of 5.33% and outstripping the S&P 500's gain of 2.9%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 31.82% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.17 billion, down 0.89% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Newmont Corporation possesses a Zacks Rank of #3 (Hold).

Investors should also note Newmont Corporation's current valuation metrics, including its Forward P/E ratio of 16.24. This represents a premium compared to its industry's average Forward P/E of 12.55.

Investors should also note that NEM has a PEG ratio of 1.42 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Miscellaneous industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Mining - Miscellaneous industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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