Newmont Mining (NEM) Leads The Pack In Pre-Market Activity

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 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 $185.9 million.
  • NEM traded 19,269 shares today in the pre-market hours as of 8:34 AM.
  • NEM is up 2.4% today from Friday's close.

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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 0.5%. Currently there are 2 analysts that rate Newmont Mining a buy, 2 analysts rate it a sell, and 12 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 $9.6 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 2.9% with 1.35 days to cover. Shares are down 17.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Newmont Mining as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, 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 46.5% when compared to the same quarter one year ago, falling from $398.00 million to $213.00 million.
  • The gross profit margin for NEWMONT MINING CORP is currently lower than what is desirable, coming in at 29.61%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 12.19% trails that of the industry average.
  • Net operating cash flow has decreased to $324.00 million or 26.36% when compared to the same quarter last year. Despite a decrease in cash flow of 26.36%, NEWMONT MINING CORP is in line with the industry average cash flow growth rate of -30.52%.
  • The share price of NEWMONT MINING CORP has not done very well: it is down 19.31% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • NEWMONT MINING CORP's earnings per share declined by 50.0% in the most recent quarter compared to 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 -$5.16 versus $3.78 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus -$5.16).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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