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Newmont Corporation (NEM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

Newmont Corporation (NEM) closed the most recent trading day at $62.82, moving +1.78% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 1.39%.

Heading into today, shares of the gold and copper miner had lost 7.17% over the past month, lagging the Basic Materials sector's gain of 2.55% and the S&P 500's gain of 3.54% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $2.49 per share and revenue of $11.70 billion. These totals would mark changes of +88.64% and +20.16%, respectively, from last year.

Investors might also notice 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.

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.

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 10.19% 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 24.82 right now. This represents a premium compared to its industry's average Forward P/E of 13.48.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 61, which puts 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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