Newmont Corporation (nem) Increases Yet Falls Behind Market: What Investors Need To Know

In the latest market close, Newmont Corporation (NEM) reached $43.63, with a +0.48% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.49%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 1.22%.

Heading into today, shares of the gold and copper miner had lost 4.55% over the past month, lagging the Basic Materials sector's loss of 2.81% and outpacing the S&P 500's loss of 8.15% in that time.

The upcoming earnings release of Newmont Corporation will be of great interest to investors. The company is forecasted to report an EPS of $0.66, showcasing a 20% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.53 billion, indicating a 12.61% increase compared to the same quarter of the previous year.

NEM's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $18.12 billion. These results would represent year-over-year changes of -8.62% and -3%, respectively.

Investors should also note any recent changes to analyst estimates for Newmont Corporation. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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.

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, there's been an 8.03% fall in the Zacks Consensus EPS estimate. Currently, Newmont Corporation is carrying a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 13.67 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.77.

One should further note that NEM currently holds a PEG ratio of 0.4. 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 0.86 as trading concluded yesterday.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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