Newmont Corporation (NEM) closed the most recent trading day at $59.88, moving +0.47% from the previous trading session. The stock lagged the S&P 500’s daily gain of 1.61%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 2.55%.
Prior to today’s trading, shares of the gold and copper miner had lost 0.48% over the past month. This has lagged the Basic Materials sector’s gain of 4.49% and the S&P 500’s loss of 0.35% in that time.
Investors will be hoping for strength from NEM as it approaches its next earnings release. In that report, analysts expect NEM to post earnings of $0.96 per share. This would mark year-over-year growth of 92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.69 billion, up 24.23% from the year-ago period.
It is also important to note the recent changes to analyst estimates for NEM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.04% lower. NEM currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, NEM is holding a Forward P/E ratio of 14.39. Its industry sports an average Forward P/E of 10.66, so we one might conclude that NEM is trading at a premium comparatively.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.
To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.
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