Why the Market Dipped But Newmont Corporation (NEM) Gained Today

Newmont Corporation (NEM) closed at $127.47 in the latest trading session, marking a +2.1% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw a decrease of 1.18%.

Prior to today's trading, shares of the gold and copper miner had lost 5.38% lagged the Basic Materials sector's gain of 7.54% and the S&P 500's gain of 0.58%.

The upcoming earnings release of Newmont Corporation will be of great interest to investors. It is anticipated that the company will report an EPS of $1.66, marking a 32.8% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.48 billion, up 9.29% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.97 per share and a revenue of $23.28 billion, representing changes of +15.67% and +2.68%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Newmont Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.78% increase. Newmont Corporation is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Newmont Corporation is currently exchanging hands at a Forward P/E ratio of 15.67. Its industry sports an average Forward P/E of 12.86, so one might conclude that Newmont Corporation is trading at a premium comparatively.

Also, we should mention that NEM has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 0.52.

The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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