Newmont Corporation (NEM) ended the recent trading session at $101.22, demonstrating a +1.37% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, lost 0.03%.
The stock of gold and copper miner has risen by 10.06% in the past month, leading the Basic Materials sector's gain of 3.51% and the S&P 500's gain of 0.54%.
The upcoming earnings release of Newmont Corporation will be of great interest to investors. In that report, analysts expect Newmont Corporation to post earnings of $1.61 per share. This would mark year-over-year growth of 15%. Our most recent consensus estimate is calling for quarterly revenue of $5.45 billion, down 3.5% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $21.12 billion. These totals would mark changes of +75.86% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments 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 business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.45% fall in the Zacks Consensus EPS estimate. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 14.16. This expresses a premium compared to the average Forward P/E of 11.89 of its industry.
Investors should also note that NEM has a PEG ratio of 0.6 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Gold stocks are, on average, holding a PEG ratio of 0.38 based on yesterday's closing prices.
The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Newmont Corporation (NEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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