Newmont Corporation Analysis: Growth Investors Favor NEM

In the latest report, Newmont Corporation (NEM) shows a 54% rating on the Growth Investor model. However, failures in EPS growth and total debt/equity raise concerns. Investors should stay cautious despite stronger sales growth.

Date: 08-02-2025

AI Rating: 5

Analysis of Newmont Corporation (NEM)

According to the report, Newmont Corporation has received a 54% rating when analyzed through the Growth Investor model developed by Martin Zweig. This rating is calculated based on various performance indicators that are essential for assessing growth stocks.

Revenue Growth: The report highlights that while the sales growth rate is classified as a 'PASS', the relationship between revenue growth and EPS growth has 'FAILED'. This indicates that although revenues are increasing, earnings per share are not keeping pace, which can negatively impact investor sentiment.

Earnings Per Share (EPS): The analysis shows that Newmont has 'PASSED' the current quarter's earnings test and also has a positive earnings growth rate for the current quarter. However, it fails to demonstrate long-term EPS growth and maintains a generally unfavorable earnings persistence rating. This inconsistency in EPS growth could make potential investors wary.

Debt Management: The total debt/equity ratio also receives a 'FAIL'. A high debt level relative to equity can pose a risk to the company’s financial health, possibly affecting future growth and profitability. Investors typically prefer companies with lower debt levels as it suggests a stronger balance sheet and less financial risk.

Conclusion: Overall, the report presents a mixed and cautious picture for Newmont Corporation. While there are strengths in certain areas like sales growth, the weaknesses in EPS growth, revenue relation, and high debt levels could lead to stock price pressures. Investors might consider keeping an eye on these metrics before making any decisions regarding NEM.

Stocks: NEM