In the latest trading session, Newmont Corporation (NEM) closed at $114.63, marking a +1.48% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the gold and copper miner had gained 13.31% in the past month. In that same time, the Basic Materials sector gained 6.36%, while the S&P 500 gained 2.26%.
Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. In that report, analysts expect Newmont Corporation to post earnings of $1.8 per share. This would mark year-over-year growth of 28.57%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 1.78% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.33 per share and a revenue of $21.6 billion, signifying shifts of +81.9% and 0%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Newmont Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.77% fall in the Zacks Consensus EPS estimate. Newmont Corporation is currently a Zacks Rank #3 (Hold).
Looking at valuation, Newmont Corporation is presently trading at a Forward P/E ratio of 15.5. This expresses a premium compared to the average Forward P/E of 13.18 of its industry.
Also, we should mention that NEM has a PEG ratio of 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Mining - Gold industry held an average PEG ratio of 0.43.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
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.
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Newmont Corporation (NEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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