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Newmont Corporation (NEM) closed the latest trading day at $48.28, indicating a +0.42% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
The gold and copper miner's shares have seen an increase of 12.23% over the last month, surpassing the Basic Materials sector's gain of 0.34% and the S&P 500's loss of 6.22%.
The investment community will be closely monitoring the performance of Newmont Corporation in its forthcoming earnings report. On that day, Newmont Corporation is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 29.09%. In the meantime, our current consensus estimate forecasts the revenue to be $4.54 billion, indicating a 12.95% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.18 per share and a revenue of $18.01 billion, representing changes of -8.62% and -3.58%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Newmont Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.13% decrease. Right now, Newmont Corporation possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 15.11 right now. This denotes a premium relative to the industry's average Forward P/E of 14.06.
One should further note that NEM currently holds a PEG ratio of 0.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 1.05.