NEW YORK (TheStreet) -- Newmont Mining (NEM) - Get Report stock is climbing by 4.24% to $16.21 in mid-morning trading on Thursday, as the dollar weakens ahead of Federal Reserve Chairwoman Janet Yellen's speech this afternoon.
The dollar weakened today as traders await possible hints about the timing of an interest rate hike during Yellen's speech about inflation and the Fed's policy at 5 p.m. today at the University of Massachusetts, The Wall Street Journal reports.
A weaker dollar benefits gold by decreasing the cost of the dollar-traded commodity and therefore upping demand.
Gold for December delivery is higher by 1.95% to $1,153.70 per ounce on the COMEX this morning.
Newmont Mining, based in Greenwood Village, Colo., is focused on gold production.
Separately, TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels 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 analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 45.0%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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.
- Despite currently having a low debt-to-equity ratio of 0.57, 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 1.69 is high and demonstrates strong liquidity.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 60.0% when compared to the same quarter one year ago, falling from $180.00 million to $72.00 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.86% compared to 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.
- You can view the full analysis from the report here: NEM