In the latest close session, Newmont Corporation (NEM) was up +2.11% at $59.46. The stock exceeded the S&P 500, which registered a gain of 0.96% for the day. Meanwhile, the Dow experienced a rise of 0.89%, and the technology-dominated Nasdaq saw an increase of 0.94%.
The gold and copper miner's shares have seen an increase of 8.54% over the last month, surpassing the Basic Materials sector's gain of 0.57% and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Newmont Corporation in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.95, signifying a 31.94% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.53 billion, indicating a 2.83% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $4.18 per share and a revenue of $19.05 billion, demonstrating changes of +20.11% and +1.98%, respectively, from the preceding year.
Investors might also notice 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.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.33% higher within the past month. Right now, Newmont Corporation possesses a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Newmont Corporation currently has a Forward P/E ratio of 13.93. For comparison, its industry has an average Forward P/E of 12.79, which means Newmont Corporation is trading at a premium to the group.
Also, we should mention that NEM has a PEG ratio of 0.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Mining - Gold industry held an average PEG ratio of 0.64.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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