Newmont Corporation (NEM) closed the most recent trading day at $116.09, moving -2.75% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.57%. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
Prior to today's trading, shares of the gold and copper miner had gained 2.16% lagged the Basic Materials sector's gain of 3.46% and outpaced the S&P 500's loss of 0.15%.
The investment community will be closely monitoring the performance of Newmont Corporation in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.66, marking a 32.8% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.48 billion, up 9.47% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.43 per share and revenue of $24.06 billion, which would represent changes of +22.35% and +6.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.34% higher. Currently, Newmont Corporation is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Newmont Corporation is currently being traded at a Forward P/E ratio of 14.17. This represents a premium compared to its industry average Forward P/E of 11.87.
Also, we should mention that NEM has a PEG ratio of 0.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Gold industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 22, finds itself in the top 9% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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