Trade-Ideas LLC identified

Newmont Mining

(

NEM

) as a pre-market leader 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 $175.0 million.
  • NEM traded 39,440 shares today in the pre-market hours as of 8:40 AM.
  • NEM is up 2.2% today from yesterday's close.

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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 0.6%. NEM has a PE ratio of 13. 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 7.5 million shares per day over the past 30 days. Newmont has a market cap of $8.8 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.45 and a short float of 1.8% with 0.97 days to cover. Shares are down 1.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Newmont Mining as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and expanding profit margins. 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.
  • 42.40% is the gross profit margin for NEWMONT MINING CORP which we consider to be strong. It has increased significantly from the same period last year.
  • 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. Despite the fact that NEM's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.98 is high and demonstrates strong liquidity.
  • NEWMONT MINING CORP's earnings per share declined by 9.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NEWMONT MINING CORP turned its bottom line around by earning $1.10 versus -$5.21 in the prior year. This year, the market expects an improvement in earnings ($1.11 versus $1.10).
  • Looking at the price performance of NEM's shares over the past 12 months, there is not much good news to report: the stock is down 31.38%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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