Newmont Corporation (NEM) Is a Trending Stock: Facts to Know Before Betting on It

Newmont Corporation (NEM) is trending amid positive earnings estimate revisions, reflected in a Zacks Rank #2 (Buy). The company's stock has outperformed the S&P 500 and its industry over the past month, with a +12.2% return. Current quarter EPS is projected at $0.95, a +31.9% year-over-year increase, and the consensus FY24 estimate points to a +20.1% increase, while revenue is expected to grow +2.8% for the current quarter.

Analysis

Newmont Corporation (NEM) has demonstrated strong recent stock performance, with shares returning +12.2% over the past month, significantly outpacing the S&P 500 composite's +3.6% gain and aligning closely with the Zacks Mining - Gold industry's +13% increase. This positive momentum is supported by robust past earnings, as evidenced by the last reported quarter where revenues reached $5.01 billion, a +24.5% year-over-year increase and a +12.22% surprise, while EPS of $1.25 was a +48.81% surprise compared to consensus. Newmont has consistently surpassed revenue estimates in the last four quarters and EPS estimates in three of them. Looking ahead, the consensus earnings estimate for the current fiscal year is $4.18, representing a +20.1% year-over-year change, with this estimate having increased by +6.8% in the last 30 days. For the next fiscal year, EPS is projected at $4.67, an +11.7% increase, with that estimate revised upwards by +3.1% over the past month. However, the current quarter's EPS estimate of $0.95, though a +31.9% year-over-year projected increase, has seen a -4.2% downward revision in the Zacks Consensus Estimate over the last 30 days. Despite this, Newmont holds a Zacks Rank #2 (Buy), influenced by positive earnings estimate trends. Revenue growth forecasts are more moderate, with a +2.8% year-over-year increase to $4.53 billion anticipated for the current quarter, and projections of +2.0% and +1.2% for the current and next fiscal years, respectively. From a valuation perspective, Newmont is graded B on the Zacks Value Style Score, indicating it may be trading at a discount compared to its peers.

Key Decisions for Investors

• Investors should consider Newmont's recent market outperformance, positive full-year earnings estimate revisions, and favorable valuation metrics which underpin its Zacks Rank #2 (Buy).
• Monitor the upcoming quarterly earnings closely, especially given the recent downward revision (-4.2%) to the current quarter's EPS consensus, to ascertain if the company can maintain its growth trajectory despite modest forward revenue growth projections.
• Assess the sustainability of Newmont's consistent history of exceeding revenue and EPS expectations, as continued beats will be crucial for maintaining positive stock momentum and justifying the bullish sentiment.