In addition to specific proprietary factors, Trade-Ideas identified Newmont Mining as such a stock due to the following factors:
NEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $246.0 million.
NEM traded 15,927 shares today in the pre-market hours as of 8:46 AM.
NEM is up 2.5% today from yesterday’s close.
Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. It primarily acquires, develops, explores for, and produces gold, silver, and copper.
The stock currently has a dividend yield of 0.4%. NEM has a PE ratio of 72. Currently there are 5 analysts that rate Newmont Mining a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Newmont Mining has been 10.6 million shares per day over the past 30 days. Newmont has a market cap of $14.4 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.19 and a short float of 2.1% with 1.23 days to cover.
Shares are up 54.2% year-to-date as of the close of trading on Wednesday.
TheStreet Quant Ratings rates Newmont Mining as a hold. The company’s strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, NEM has a quick ratio of 2.30, which demonstrates the ability of the company to cover short-term liquidity needs.
Compared to its closing price of one year ago, NEM’s share price has jumped by 25.67%, exceeding the performance of the broader market during that same time frame. Regarding the stock’s future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
Despite the weak revenue results, NEM has outperformed against the industry average of 37.9%. Since the same quarter one year prior, revenues slightly dropped by 10.0%. Weakness in the company’s revenue seems to have hurt the bottom line, decreasing earnings per share.
Net operating cash flow has significantly decreased to $272.00 million or 51.34% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm’s growth is significantly lower.
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 1793.3% when compared to the same quarter one year ago, falling from $15.00 million to -$254.00 million.