Markets

Newmont Corporation (NEM) Dips More Than Broader Markets: What You Should Know

Newmont Corporation (NEM) closed at $63 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Heading into today, shares of the gold and copper miner had lost 4.89% over the past month, lagging the Basic Materials sector's loss of 0.93% and the S&P 500's gain of 3.19% in that time.

NEM will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. The company is expected to report EPS of $0.78, up 116.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.27 billion, up 20.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.49 per share and revenue of $11.70 billion, which would represent changes of +88.64% and +20.16%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NEM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 10.19% higher. NEM is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, NEM is holding a Forward P/E ratio of 25.74. This valuation marks a premium compared to its industry's average Forward P/E of 13.59.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Newmont Corporation (NEM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More