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Newmont Corporation (NEM) Gains As Market Dips: What You Should Know

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Newmont Corporation (NEM - Free Report) closed at $62.44 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily loss of 0.05%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the gold and copper miner had gained 29.85% over the past month. This has outpaced the Basic Materials sector's gain of 27.2% and the S&P 500's gain of 21.82% in that time.

Wall Street will be looking for positivity from NEM as it approaches its next earnings report date. This is expected to be May 5, 2020. The company is expected to report EPS of $0.44, up 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 48.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $12.05 billion, which would represent changes of +90.91% and +23.7%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NEM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.66% higher. NEM currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that NEM has a Forward P/E ratio of 24.48 right now. For comparison, its industry has an average Forward P/E of 10.55, which means NEM is trading at a premium to the group.

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

The Zacks Industry Rank includes is listed in order 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.

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