Newmont Corporation (NEM) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Newmont Corporation (NEM) closed at $106.54, marking a -4.05% move from the previous day. This change lagged the S&P 500's daily loss of 1.36%. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.

Shares of the gold and copper miner witnessed a loss of 9.21% over the previous month, trailing the performance of the Basic Materials sector with its loss of 5.3%, and the S&P 500's loss of 1.76%.

The investment community will be closely monitoring the performance of Newmont Corporation in its forthcoming earnings report. The company is predicted to post an EPS of $2.07, indicating a 65.6% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.53 billion, indicating a 30.38% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.79 per share and a revenue of $26.27 billion, indicating changes of +27.58% and +15.88%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Newmont Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.64% higher. At present, Newmont Corporation boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 12.63. This indicates a premium in contrast to its industry's Forward P/E of 10.68.

We can also see that NEM currently has a PEG ratio of 0.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Mining - Gold industry held an average PEG ratio of 1.18.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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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Newmont Corporation (NEM): Free Stock Analysis Report

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

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