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Why the Market Dipped But Newmont Corporation (NEM) Gained Today

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Newmont Corporation (NEM - Free Report) ended the recent trading session at $37.72, demonstrating a +1.32% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.23%. Meanwhile, the Dow experienced a drop of 1.36%, and the technology-dominated Nasdaq saw a decrease of 1.4%.

Coming into today, shares of the gold and copper miner had gained 10.74% in the past month. In that same time, the Basic Materials sector gained 7.94%, while the S&P 500 gained 1.61%.

The upcoming earnings release of Newmont Corporation will be of great interest to investors. The company is forecasted to report an EPS of $0.39, showcasing a 2.5% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 26.86% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.88 per share and revenue of $15 billion, indicating changes of +16.77% and +26.99%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.82% lower within the past month. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Newmont Corporation is at present trading with a Forward P/E ratio of 19.76. This signifies a premium in comparison to the average Forward P/E of 17.17 for its industry.

We can also see that NEM currently has a PEG ratio of 3.18. 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. NEM's industry had an average PEG ratio of 3.32 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 evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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 to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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