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Why Newmont Corporation (NEM) Outpaced the Stock Market Today
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Newmont Corporation (NEM - Free Report) closed at $83.72 in the latest trading session, marking a +2.45% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.44% for the day. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.7%.
Shares of the gold and copper miner have appreciated by 15.47% over the course of the past month, outperforming the Basic Materials sector's gain of 7.28%, and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. On that day, Newmont Corporation is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 56.79%. Simultaneously, our latest consensus estimate expects the revenue to be $4.92 billion, showing a 6.75% escalation compared to the year-ago quarter.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $5.44 per share and revenue of $20.68 billion. These results would represent year-over-year changes of +56.32% and +10.67%, respectively.
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 business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.71% higher. Newmont Corporation is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Newmont Corporation is presently trading at a Forward P/E ratio of 15.01. This indicates a discount in contrast to its industry's Forward P/E of 15.61.
It is also worth noting that NEM currently has a PEG ratio of 0.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Gold was holding an average PEG ratio of 0.76 at yesterday's closing price.
The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.
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Why Newmont Corporation (NEM) Outpaced the Stock Market Today
Newmont Corporation (NEM - Free Report) closed at $83.72 in the latest trading session, marking a +2.45% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.44% for the day. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.7%.
Shares of the gold and copper miner have appreciated by 15.47% over the course of the past month, outperforming the Basic Materials sector's gain of 7.28%, and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. On that day, Newmont Corporation is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 56.79%. Simultaneously, our latest consensus estimate expects the revenue to be $4.92 billion, showing a 6.75% escalation compared to the year-ago quarter.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $5.44 per share and revenue of $20.68 billion. These results would represent year-over-year changes of +56.32% and +10.67%, respectively.
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 business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.71% higher. Newmont Corporation is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Newmont Corporation is presently trading at a Forward P/E ratio of 15.01. This indicates a discount in contrast to its industry's Forward P/E of 15.61.
It is also worth noting that NEM currently has a PEG ratio of 0.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Gold was holding an average PEG ratio of 0.76 at yesterday's closing price.
The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.