Don't Judge Newmont on Technicals Alone - Check Its Fundamentals!

By Naomi Wentworth • Monday, July 10 12:25 • Permanent Link

Large-cap Basic Materials company Newmont has moved 0.3% so far today on a volume of 1,912,107, compared to its average of 8,097,559.

Newmont trades -45.8% away from its average analyst target price of $78.2 per share. The 3 analysts following the stock have set target prices ranging from $58.06 to $94.09, and on average have given Newmont a rating of hold.

Anyone interested in buying NEM should be aware of the facts below:

Newmont's current price is 27.2% above its Graham number of $33.33, which implies that at its current valuation it does not offer a margin of safety
Based on its trailing earnings per share of -0.71, Newmont has a trailing 12 month Price to Earnings (P/E) ratio of -59.7 while the S&P 500 average is 15.97
NEM has a forward P/E ratio of 11.9 based on its forward 12 month price to earnings (EPS) of $3.55 per share
Its Price to Book (P/B) ratio is 1.73 compared to its sector average of 2.08
Newmont Corporation engages in the production and exploration of gold.
Based in Denver, the company has 14,600 full time employees and a market cap of $33.68 Billion. Newmont currently returns an annual dividend yield of 4.5%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.