Newmont Corporation (NEM) closed at $58.09 in the latest trading session, marking a -2.3% move from the prior day. This change lagged the S&P 500's daily gain of 1.11%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 1.43%.
Coming into today, shares of the gold and copper miner had gained 10.83% in the past month. In that same time, the Basic Materials sector gained 2.17%, while the S&P 500 gained 3.92%.
Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. On that day, Newmont Corporation is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 40.28%. Alongside, our most recent consensus estimate is anticipating revenue of $4.53 billion, indicating a 2.83% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.32 per share and revenue of $19.05 billion, which would represent changes of +24.14% and +1.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Newmont Corporation. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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, the Zacks Consensus EPS estimate has moved 4.77% higher. Newmont Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Newmont Corporation is currently being traded at a Forward P/E ratio of 13.75. Its industry sports an average Forward P/E of 13.02, so one might conclude that Newmont Corporation is trading at a premium comparatively.
Investors should also note that NEM has a PEG ratio of 0.78 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Mining - Gold industry had an average PEG ratio of 0.62 as trading concluded yesterday.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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