Newmont Corporation (NEM) closed at $61.88 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's 1.05% gain on the day. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 0.66%.
Prior to today's trading, shares of the gold and copper miner had gained 11.94% over the past month. This has outpaced the Basic Materials sector's loss of 1.45% and the S&P 500's loss of 1.56% in that time.
NEM will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2020. In that report, analysts expect NEM to post earnings of $0.33 per share. This would mark year-over-year growth of 175%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.35 billion, up 3.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.37 per share and revenue of $11.82 billion. These totals would mark changes of +79.55% and +21.4%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.48% lower within the past month. NEM is currently a Zacks Rank #3 (Hold).
Digging into valuation, NEM currently has a Forward P/E ratio of 26.45. This represents a premium compared to its industry's average Forward P/E of 15.68.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.
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