Newmont Mining (NEM): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. 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 $141.1 million.
- NEM has traded 963,457 shares today.
- NEM is trading at 2.29 times the normal volume for the stock at this time of day.
- NEM is trading at a new low 4.05% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on NEM:
Newmont Mining Corporation operates in the mining industry. It primarily acquires, develops, explores for, and produces gold, copper, and silver deposits. The company's operations and/or assets are located in the United States, Australia, Peru, Indonesia, Ghana, and New Zealand. The stock currently has a dividend yield of 0.5%. NEM has a PE ratio of 2. Currently there are 5 analysts that rate Newmont Mining a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Newmont Mining has been 8.7 million shares per day over the past 30 days. Newmont has a market cap of $10.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.48 and a short float of 2.3% with 1.45 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Newmont Mining as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 46.1%. Since the same quarter one year prior, revenues rose by 16.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 2.8% when compared to the same quarter one year prior, going from $213.00 million to $219.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NEWMONT MINING CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- In its most recent trading session, NEM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Newmont Mining Ratings Report.
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