NEW YORK (TheStreet) -- Shares of Newmont Mining Corp. are down by 0.92% to $22.51 in early afternoon trading on Thursday, as some mining and related stocks tumble today due to the slump in the price of gold. The precious metal is falling today as some investors choose to lock in their gains ahead of the holiday weekend, the Wall Street Journal reports, adding that gold traders were sensitive about Wednesday's jobs data compiled by ADP and forecasting firm Moody' Analytics. Gold for June delivery is lower by 0.74% to $1,199.30 per ounce on the COMEX this afternoon. On Wednesday gold prices jumped above $1,200 per ounce. Investors were concerned about Wednesday's data since the market will be closed tomorrow in observance of Good Friday when the Labor Department is scheduled to release its nonfarm payrolls report. The COMEX and electronic trading will resume Sunday night. "Gold's going to have the weekend to percolate, and Sunday night could be a real barnburner," senior market strategist with LaSalle Futures Charles Nedoss told the Journal. Separately, TheStreet Ratings team rates NEWMONT MINING CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate NEWMONT MINING CORP (NEM) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year." Highlights from the analysis by TheStreet Ratings Team goes as follows: NEWMONT MINING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NEWMONT MINING CORP turned its bottom line around by earning $1.10 versus -$5.21 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $1.10). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 101.3% when compared to the same quarter one year prior, rising from -$1,187.00 million to $15.00 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NEWMONT MINING CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500. NEM's debt-to-equity ratio of 0.65 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.40 is sturdy. In its most recent trading session, NEM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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. You can view the full analysis from the report here: NEM Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
Click to view a price quote on NEM. Click to research the Metals & Mining industry.
from Latest TSC Headlines http://ift.tt/1CVSoCZ
No comments:
Post a Comment