Newmont Corporation (NEM) closed the most recent trading day at $41.92, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the gold and copper miner had lost 13.61% over the past month. This has lagged the Basic Materials sector's loss of 2.2% and the S&P 500's gain of 4.14% in that time.
Wall Street will be looking for positivity from Newmont Corporation as it approaches its next earnings report date. In that report, analysts expect Newmont Corporation to post earnings of $0.42 per share. This would mark a year-over-year decline of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $2.87 billion, down 6.16% from the prior-year quarter.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $2.42 per share and revenue of $11.9 billion. These results would represent year-over-year changes of +30.81% and -0.14%, respectively.
Investors should also note any recent changes to analyst estimates for Newmont Corporation. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 6.14% higher. Newmont Corporation currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Newmont Corporation is holding a Forward P/E ratio of 17.39. For comparison, its industry has an average Forward P/E of 9.26, which means Newmont Corporation is trading at a premium to the group.
Also, we should mention that NEM has a PEG ratio of 1.71. 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. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.83 as of yesterday's close.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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