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

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In the latest trading session, Newmont Corporation (NEM - Free Report) closed at $50.52, marking a +1.12% move from the previous day. This change lagged the S&P 500's 3.41% gain on the day. At the same time, the Dow added 3.44%, and the tech-heavy Nasdaq gained 2.58%.

Heading into today, shares of the gold and copper miner had gained 3.27% over the past month, outpacing the Basic Materials sector's loss of 13.27% and the S&P 500's loss of 10.46% in that time.

NEM will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2020. On that day, NEM is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, up 46.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.42 per share and revenue of $12.21 billion, which would represent changes of +83.33% and +25.32%, respectively, from the prior year.

Any recent changes to analyst estimates for NEM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 8.11% higher within the past month. NEM is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, NEM currently has a Forward P/E ratio of 20.63. This represents a premium compared to its industry's average Forward P/E of 11.22.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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