Newmont Corporation (NEM) closed the most recent trading day at $65.77, moving +0.46% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 1.23%. Elsewhere, the Dow lost 1.31%, while the tech-heavy Nasdaq lost 2.29%.
Heading into today, shares of the gold and copper miner had gained 12.09% over the past month, outpacing the Basic Materials sector’s gain of 11.74% and the S&P 500’s gain of 5.2% in that time.
Investors will be hoping for strength from NEM as it approaches its next earnings release, which is expected to be July 30, 2020. On that day, NEM is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 158.33%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 3.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.49 per share and revenue of $11.90 billion, which would represent changes of +88.64% and +22.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NEM. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 4.68% higher within the past month. NEM currently has a Zacks Rank of #3 (Hold).
Digging into valuation, NEM currently has a Forward P/E ratio of 26.28. This valuation marks a premium compared to its industry’s average Forward P/E of 18.94.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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