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Newmont Corporation (NEM) Ascends While Market Falls: Some Facts to Note

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Newmont Corporation (NEM - Free Report) closed the most recent trading day at $105.78, moving +1% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.03%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq decreased by 0.09%.

The stock of gold and copper miner has risen by 15.7% in the past month, leading the Basic Materials sector's gain of 9.22% and the S&P 500's gain of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.51, signifying a 7.86% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.45 billion, reflecting a 3.5% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.06 per share and a revenue of $21.12 billion, representing changes of +74.14% and +13.05%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.19% higher. At present, Newmont Corporation boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Newmont Corporation is currently being traded at a Forward P/E ratio of 17.29. This represents a discount compared to its industry average Forward P/E of 17.73.

One should further note that NEM currently holds a PEG ratio of 0.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NEM's industry had an average PEG ratio of 0.56 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 47, positioning it in the top 20% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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