Newmont Corporation (NEM) closed at $67.38 in the latest trading session, marking a +1.75% move from the prior day. This move outpaced the S&P 500’s daily gain of 1.27%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.
Heading into today, shares of the gold and copper miner had gained 3.29% over the past month, lagging the Basic Materials sector’s gain of 3.54% and outpacing the S&P 500’s gain of 0.37% in that time.
Wall Street will be looking for positivity from NEM as it approaches its next earnings report date. On that day, NEM is projected to report earnings of $0.69 per share, which would represent year-over-year growth of 91.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.17 billion, up 16.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $11.40 billion. These totals would mark changes of +71.21% and +17.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for NEM. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.22% higher. NEM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that NEM has a Forward P/E ratio of 29.34 right now. For comparison, its industry has an average Forward P/E of 18.42, which means NEM is trading at a premium to the group.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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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