In the latest trading session, Newmont Mining (NEM) closed at $61.64, marking a -0.18% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.
Coming into today, shares of the gold and copper miner had gained 2.1% in the past month. In that same time, the Basic Materials sector gained 11.13%, while the S&P 500 gained 4.27%.
Investors will be hoping for strength from NEM as it approaches its next earnings release. In that report, analysts expect NEM to post earnings of $0.96 per share. This would mark year-over-year growth of 92%. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, up 24.23% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for NEM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 3% lower. NEM is currently a Zacks Rank #4 (Sell).
In terms of valuation, NEM is currently trading at a Forward P/E ratio of 14.91. This represents a premium compared to its industry's average Forward P/E of 11.49.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 132, putting it in the bottom 49% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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