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Newmont Corporation (NEM) Gains But Lags Market: What You Should Know

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Newmont Corporation (NEM - Free Report) closed at $48.28 in the latest trading session, marking a +1.56% move from the prior day. This move lagged the S&P 500's daily gain of 6.24%. Elsewhere, the Dow gained 6.38%, while the tech-heavy Nasdaq added 5.6%.

Heading into today, shares of the gold and copper miner had lost 3.77% over the past month, outpacing the Basic Materials sector's loss of 22.34% and the S&P 500's loss of 21.22% in that time.

Investors will be hoping for strength from NEM as it approaches its next earnings release. On that day, NEM is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 63.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.92 billion, up 61.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.26 per share and revenue of $11.77 billion, which would represent changes of +71.21% and +20.86%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NEM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 13.32% higher within the past month. NEM is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, NEM is currently trading at a Forward P/E ratio of 21.08. This valuation marks a premium compared to its industry's average Forward P/E of 10.48.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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