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Here's Why Newmont Corporation (NEM) Fell More Than Broader Market

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Newmont Corporation (NEM - Free Report) closed the most recent trading day at $39.06, moving -1.54% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.95%. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the gold and copper miner had gained 17.09% in the past month. In that same time, the Basic Materials sector gained 4.98%, while the S&P 500 gained 1.78%.

The upcoming earnings release of Newmont Corporation will be of great interest to investors. In that report, analysts expect Newmont Corporation to post earnings of $0.39 per share. This would mark a year-over-year decline of 2.5%. Alongside, our most recent consensus estimate is anticipating revenue of $3.4 billion, indicating a 26.86% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.88 per share and a revenue of $15 billion, demonstrating changes of +16.77% and +26.99%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Newmont Corporation is currently a Zacks Rank #3 (Hold).

In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 21.06. This valuation marks a premium compared to its industry's average Forward P/E of 16.79.

Investors should also note that NEM has a PEG ratio of 3.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Miscellaneous stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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