Newmont Corporation (NEM) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Newmont Corporation (NEM) closed at $93.40, marking a -1.17% move from the previous day. This move lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.

The gold and copper miner's stock has dropped by 12.64% in the past month, falling short of the Basic Materials sector's loss of 8.04% and the S&P 500's loss of 1.82%.

Market participants will be closely following the financial results of Newmont Corporation in its upcoming release. In that report, analysts expect Newmont Corporation to post earnings of $2.25 per share. This would mark year-over-year growth of 57.34%. Meanwhile, our latest consensus estimate is calling for revenue of $6.19 billion, up 16.38% from the prior-year quarter.

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 is also important to note the recent changes to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 1.93% higher. Newmont Corporation currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Newmont Corporation is presently being traded at a Forward P/E ratio of 9.54. This valuation marks a premium compared to its industry average Forward P/E of 8.95.

We can additionally observe that NEM currently boasts a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Mining - Gold industry held an average PEG ratio of 0.84.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 25% of all 250+ industries.

Story Continues

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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