Newmont Corporation Shows Mixed Performance in Guru Report

Newmont Corporation (NEM) receives a 54% rating in a guru report. While it shows strong metrics in several areas, it fails on earnings growth, signaling potential concerns for investors.

Date: 30-12-2024

AI Rating: 5

Overview of Performance Ratings

Newmont Corporation (NEM) is evaluated under the Growth Investor model, which emphasizes growth stocks with strong earnings and sales growth potential. The report indicates a score of 54%, which suggests moderate interest but indicates that there are significant areas of concern.

Key Metrics Analyzed

1. P/E Ratio: The stock passes this test, indicating reasonable valuation compared to earnings.

2. Revenue Growth vs. EPS Growth: The company fails this comparison, suggesting that while revenues might be growing, the earnings per share growth is not keeping pace, which can negatively impact investor sentiment.

3. Sales Growth Rate: This metric passes, which implies some level of effective sales performance.

4. Current Quarter Earnings: Successfully passing this test points towards short-term earnings stability.

5. Quarterly Earnings from Last Year: Passing this indicates consistency with prior performance.

6. Positive Earnings Growth Rate: This is a good sign as it reflects current profitability trajectories.

7. EPS Growth Compared to Last Year: The company passes this, indicating recent quarterly performance improvements.

8. Long-Term EPS Growth: The failure in this area is crucial as it raises red flags about the company’s future earnings capabilities.

9. Total Debt/Equity Ratio: The failure here indicates higher accumulated debt compared to equity, which can heighten financial risk.

10. Insider Transactions: This metric passes, showing that insiders are potentially investing in their own company.

Overall, despite some passing metrics reflecting decent short-term performance, several failures, particularly in growth areas, suggest that investors should be cautious. Concerns regarding earnings consistency and increasing debt levels could impact investor confidence and subsequently affect stock prices.

Stocks: NEM