The most recent trading session ended with Newmont Corporation (NEM) standing at $52.52, reflecting a -0.62% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.39%.
Heading into today, shares of the gold and copper miner had gained 0.32% over the past month, lagging the Basic Materials sector's gain of 2.43% and the S&P 500's gain of 6.69% in that time.
The upcoming earnings release of Newmont Corporation will be of great interest to investors. On that day, Newmont Corporation is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 31.94%. At the same time, our most recent consensus estimate is projecting a revenue of $4.53 billion, reflecting a 2.83% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $19.05 billion, signifying shifts of +20.11% and +1.98%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates 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 company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 7.5% higher within the past month. Newmont Corporation is currently a Zacks Rank #1 (Strong Buy).
In the context of valuation, Newmont Corporation is at present trading with a Forward P/E ratio of 12.64. This expresses no noticeable deviation compared to the average Forward P/E of 12.64 of its industry.
We can additionally observe that NEM currently boasts a PEG ratio of 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Mining - Gold stocks are, on average, holding a PEG ratio of 0.6 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 17, finds itself in the top 7% echelons 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.
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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