Yahoo Finance Newmont Corporation (NEM) Gains But Lags Market: What You Should Know
In the latest trading session, Newmont Corporation (NEM) closed at $41.99, marking a +0.17% move from the previous day. The stock lagged the S&P 500's daily gain of 0.24%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.73%.
Prior to today's trading, shares of the gold and copper miner had lost 13.19% over the past month. This has lagged the Basic Materials sector's loss of 3.21% and the S&P 500's gain of 3.56% in that time.
Wall Street will be looking for positivity from Newmont Corporation as it approaches its next earnings report date. On that day, Newmont Corporation is projected to report earnings of $0.46 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $2.87 billion, down 6.16% from the year-ago period.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $2.42 per share and revenue of $11.9 billion. These results would represent year-over-year changes of +30.81% and -0.14%, respectively.
It is also important to note the recent changes to analyst estimates for Newmont Corporation. 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.
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 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. The Zacks Consensus EPS estimate has moved 6.14% higher within the past month. Newmont Corporation is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Newmont Corporation is holding a Forward P/E ratio of 17.32. For comparison, its industry has an average Forward P/E of 9.7, which means Newmont Corporation is trading at a premium to the group.
We can also see that NEM currently has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Newmont Corporation (NEM) : Free Stock Analysis Report
