In the latest trading session, Newmont Corporation (NEM) closed at $61.55, marking a -0.95% move from the previous day. This move lagged the S&P 500’s daily loss of 0.34%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.73%.
Heading into today, shares of the gold and copper miner had gained 11.8% over the past month, outpacing the Basic Materials sector’s gain of 9.7% and the S&P 500’s gain of 5.71% in that time.
NEM will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2020. In that report, analysts expect NEM to post earnings of $0.31 per share. This would mark year-over-year growth of 158.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 3.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.44 per share and revenue of $11.80 billion, which would represent changes of +84.85% and +21.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NEM. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.58% higher. NEM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that NEM has a Forward P/E ratio of 25.42 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 16.2.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.
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