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In the latest trading session, Newmont Corporation (NEM) closed at $38.11, marking a -0.68% move from the previous day. This change lagged the S&P 500's 1.26% gain on the day. Elsewhere, the Dow saw an upswing of 0.8%, while the tech-heavy Nasdaq appreciated by 1.77%.
The the stock of gold and copper miner has fallen by 6.57% in the past month, leading the Basic Materials sector's loss of 9.43% and undershooting the S&P 500's loss of 2.82%.
Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. On that day, Newmont Corporation is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.88 billion, up 23.2% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% downward. Currently, Newmont Corporation is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Newmont Corporation currently has a Forward P/E ratio of 10.99. Its industry sports an average Forward P/E of 9.98, so one might conclude that Newmont Corporation is trading at a premium comparatively.
Also, we should mention that NEM has a PEG ratio of 0.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Mining - Gold industry stood at 0.45 at the close of the market yesterday.
The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.