Newmont Corporation (NEM) Registers a Bigger Fall Than the Market: Important Facts to Note

Newmont Corporation (NEM) ended the recent trading session at $128.09, demonstrating a -1.79% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.

Shares of the gold and copper miner have appreciated by 23.71% over the course of the past month, outperforming the Basic Materials sector's gain of 11.88%, and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. In that report, analysts expect Newmont Corporation to post earnings of $1.88 per share. This would mark year-over-year growth of 9.94%. Meanwhile, our latest consensus estimate is calling for revenue of $5.92 billion, up 7.15% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.01 per share and a revenue of $25.74 billion, representing changes of +30.77% and +13.56%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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, the Zacks Consensus EPS estimate has shifted 0.59% downward. Right now, Newmont Corporation possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Newmont Corporation is holding a Forward P/E ratio of 14.48. For comparison, its industry has an average Forward P/E of 13.57, which means Newmont Corporation is trading at a premium to the group.

It is also worth noting that NEM currently has a PEG ratio of 1.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Gold stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 233, positioning it in the bottom 6% of all 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.

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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