Newmont Corporation (NEM) closed the most recent trading day at $99.71, moving -7.96% from the previous trading session. This change lagged the S&P 500's daily loss of 2.65%. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 4.18%.
Shares of the gold and copper miner have depreciated by 4.55% over the course of the past month, underperforming the Basic Materials sector's gain of 4.79%, and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Newmont Corporation in its upcoming release. The company is expected to report EPS of $2.25, up 57.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 16.38% from the year-ago period.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $27.25 billion. These results would represent year-over-year changes of +43.83% and +20.2%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.53% higher. Newmont Corporation is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Newmont Corporation is at present trading with a Forward P/E ratio of 10.94. Its industry sports an average Forward P/E of 9.45, so one might conclude that Newmont Corporation is trading at a premium comparatively.
We can also see that NEM currently has a PEG ratio of 1.8. 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 currently had an average PEG ratio of 1.01 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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