U.S. Markets closed
  • S&P 500

    3,629.65
    -5.76 (-0.16%)
     
  • Dow 30

    29,872.47
    -173.77 (-0.58%)
     
  • Nasdaq

    12,094.40
    +57.62 (+0.48%)
     
  • Russell 2000

    1,845.02
    -8.51 (-0.46%)
     
  • Crude Oil

    45.08
    -0.63 (-1.38%)
     
  • Gold

    1,810.20
    +4.70 (+0.26%)
     
  • Silver

    23.45
    +0.00 (+0.02%)
     
  • EUR/USD

    1.1912
    -0.0007 (-0.0596%)
     
  • 10-Yr Bond

    0.8780
    -0.0040 (-0.45%)
     
  • Vix

    21.25
    -0.39 (-1.80%)
     
  • GBP/USD

    1.3361
    -0.0021 (-0.1603%)
     
  • USD/JPY

    104.2620
    -0.1780 (-0.1704%)
     
  • BTC-USD

    17,219.01
    -760.17 (-4.23%)
     
  • CMC Crypto 200

    335.66
    -34.86 (-9.41%)
     
  • FTSE 100

    6,354.58
    -36.51 (-0.57%)
     
  • Nikkei 225

    26,537.31
    +240.45 (+0.91%)
     

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

Zacks Equity Research
·3 min read

Newmont Corporation (NEM) closed the most recent trading day at $61.48, moving +0.47% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.35%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Heading into today, shares of the gold and copper miner had lost 3.56% over the past month, lagging the Basic Materials sector's loss of 1.36% and the S&P 500's gain of 3.82% in that time.

NEM will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. On that day, NEM is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 116.67%. Our most recent consensus estimate is calling for quarterly revenue of $3.27 billion, up 20.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.50 per share and revenue of $11.70 billion. These totals would mark changes of +89.39% and +20.16%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NEM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 10.71% higher. NEM is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, NEM currently has a Forward P/E ratio of 24.49. This represents a premium compared to its industry's average Forward P/E of 13.31.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.

To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Newmont Corporation (NEM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research