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Newmont Corporation: Mixed Ratings on Growth Investor Model

In a recent report, Newmont Corporation received a mixed rating of 54% based on its underlying fundamentals. Although it excels in areas like sales growth and EPS growth for the current quarter, it fails to meet expectations in revenue growth relative to EPS growth and long-term earnings growth.

Date: 
AI Rating:   5

Analysis of Newmont Corporation

The report provides a detailed look at Newmont Corporation (NEM) and evaluates its stock based on the Growth Investor model established by Martin Zweig. The stock achieves a 54% rating, indicating a mixed performance in terms of growth potential and valuation.

Key Metrics

  • P/E Ratio: Pass - The stock's valuation appears reasonable, which is typically a positive sign for investors.
  • Revenue Growth in Relation to EPS Growth: Fail - This suggests that while the company's sales might be increasing, its earnings per share growth does not match up, raising concerns about profitability.
  • Sales Growth Rate: Pass - Strong sales growth is a positive indicator, which remains attractive for investors.
  • Current Quarter Earnings: Pass - Indicates that the company is performing well in the present period.
  • Quarterly Earnings One Year Ago: Pass - Consistency is crucial; this signifies stability.
  • Positive Earnings Growth Rate for Current Quarter: Pass - Suggesting that the company continues to grow in earnings.
  • EPS Growth for Current Quarter Must Be Greater Than Prior 3 Quarters: Pass - A good sign as it shows improving performance over time.

Weaknesses

  • Earnings Growth Rate for the Past Several Quarters: Fail - This could indicate potential ongoing challenges in sustaining earnings.
  • EPS Growth for Current Quarter Must Be Greater Than Historical Growth Rate: Fail - This raises concerns about whether current growth is sustainable.
  • Earnings Persistence: Fail - Suggests volatility in earnings which may worry investors.
  • Long-Term EPS Growth: Fail - A significant red flag for long-term investors focused on consistent performance.
  • Total Debt/Equity Ratio: Fail - High levels of debt relative to equity might hinder financial flexibility.

Insider Transactions

The positive aspect noted is the insider transactions, which generally suggest confidence from those within the company regarding its future prospects.

Overall, while Newmont Corporation has strong sales growth and has passed several criteria indicating current performance, the weaknesses in earnings growth and high debt levels could affect its stock price adversely if investors prioritize these factors. The mixed ratings might lead to volatility in the stock as investor sentiment fluctuates.

Stocks:  NEM