Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Newmont Mining as such a stock due to the following factors:
- NEM has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 6.19 mentions/day.
- NEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $247.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on NEM:
Newmont Mining Corporation, together with its subsidiaries, acquires, explores for, and produces gold, copper, and silver deposits. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, Mexico, and Suriname. The stock currently has a dividend yield of 2.4%. Currently there are 2 analysts that rate Newmont Mining a buy, 4 analysts rate it a sell, and 10 rate it a hold.
The average volume for Newmont Mining has been 10.3 million shares per day over the past 30 days. Newmont has a market cap of $12.7 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.02 and a short float of 3.8% with 1.61 days to cover. Shares are up 14.8% year-to-date as of the close of trading on Friday.
rates Newmont Mining as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the ratings report include:
- 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 68.3% when compared to the same quarter one year ago, falling from $315.00 million to $100.00 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, NEWMONT MINING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $180.00 million or 58.42% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NEWMONT MINING CORP has marginally lower results.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.76%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 63.49% 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.
- NEWMONT MINING CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NEWMONT MINING CORP swung to a loss, reporting -$5.06 versus $3.78 in the prior year. This year, the market expects an improvement in earnings ($0.76 versus -$5.06).
- You can view the full Newmont Mining Ratings Report.