In the latest close session, Newmont Corporation (NEM) was up +2.28% at $103.53. This change outpaced the S&P 500's 0.64% gain on the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Coming into today, shares of the gold and copper miner had gained 12.77% in the past month. In that same time, the Basic Materials sector gained 5.72%, while the S&P 500 gained 0.55%.
The investment community will be closely monitoring the performance of Newmont Corporation in its forthcoming earnings report. The company is predicted to post an EPS of $1.61, indicating a 15% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.45 billion, showing a 3.5% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.12 per share and revenue of $21.12 billion, indicating changes of +75.86% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Newmont Corporation should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.45% lower. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Newmont Corporation is currently trading at a Forward P/E ratio of 14.35. Its industry sports an average Forward P/E of 11.89, so one might conclude that Newmont Corporation is trading at a premium comparatively.
It's also important to note that NEM currently trades at a PEG ratio of 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Mining - Gold was holding an average PEG ratio of 0.38 at yesterday's closing price.
The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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