Why Newmont Corporation (NEM) Dipped More Than Broader Market Today
The most recent trading session ended with Newmont Corporation (NEM) standing at $40.91, reflecting a -1.16% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 1.64%.
The the stock of gold and copper miner has risen by 2.1% in the past month, lagging the Basic Materials sector's gain of 4.35% and the S&P 500's gain of 4%.
The investment community will be paying close attention to the earnings performance of Newmont Corporation in its upcoming release. In that report, analysts expect Newmont Corporation to post earnings of $0.58 per share. This would mark year-over-year growth of 31.82%. At the same time, our most recent consensus estimate is projecting a revenue of $3.17 billion, reflecting a 0.89% fall from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Newmont Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Newmont Corporation presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 16.66. Its industry sports an average Forward P/E of 11.81, so one might conclude that Newmont Corporation is trading at a premium comparatively.
One should further note that NEM currently holds a PEG ratio of 1.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Mining - Miscellaneous industry had an average PEG ratio of 1.46 as trading concluded yesterday.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Newmont Corporation (NEM) : Free Stock Analysis Report
