Dj Newmont Corp. Stock Falls Wednesday, Underperforms Market

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores?

The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value Score

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth Score

While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum Score

Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM Score

What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank

A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Newmont Corporation (NEM)

Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2023, Newmont had gold mineral reserves of more than 135.9 million ounces. Its attributable gold production for 2023 was 5.5 million ounces.

NEM is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.21; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.27 to $3.15 per share. NEM also boasts an average earnings surprise of 22.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, NEM should be on investors' short list.

Zacks Investment Research

For Immediate Releases

Chicago, IL – November 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Amazon.com Inc. AMZN, KLA Corp. KLAC, Newmont Corp. NEM, Uber Technologies Inc. UBER and S&P Global Inc. SPGI.

Here are highlights from Wednesday’s Analyst Blog:

5 U.S. Corporate Behemoths to Buy as Short-Term Momentum Plays

With just one and a half months of trading left in 2024, Wall Street is likely to repeat its impressive rally of 2023. Last year, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 13.7%, 23.9% and 43.4%, respectively. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 17.4%, 26.5% and 30.7%, respectively.

During the astonishing rally of the past 22 months, several stocks, especially corporate bigwigs have skyrocketed. Despite this phenomenal growth of U.S. stock markets, stocks of various giant corporates have provided returns that are below the return of the broad-market index – the S&P 500.

We recommend investing in such stocks that boast strong momentum and carry a favorable Zacks Rank. Moreover, these stocks have double-digit upside potential in the short term. Five such stocks are - Amazon.com Inc., KLA Corp., Newmont Corp., Uber Technologies Inc. and S&P Global Inc.

Momentum Likely to Continue

Momentum investing calls for continued appraisal of stocks, ensuring that an investor does not pick a beaten-down name or overlook a thriving one. Momentum investors buy high on the anticipation that a stock will only ascend in the short to intermediate term.

We are still not clear about economic policies (especially imposition of tariff and lowering of corporate tax) of the President-elect Donald Trump for his second term. While this could cause occasional market fluctuations, the overall movement of Wall Street is likely to remain northbound due to three main drivers.

First, the fundamentals of the U.S. economy are rock-solid. U.S. GDP grew at 1.6%, 3% and 2.8%, respectively, in the first three quarters of 2024. On Nov 7, the Atlanta Fed GDPNow tracker estimated 2.5% GDP growth for the fourth quarter. These numbers are higher than the pre-pandemic period.

Second, as of Nov 8, 452 S&P 500 companies reported their quarterly financial numbers. Total earnings of these companies are up 7.1% year over year on 5.5% higher revenues, with 73.5% beating earnings per share (EPS) estimates and 61.5% beating revenue estimates.

Looking at the third quarter as a whole, total earnings of the S&P 500 Index are expected to be up 7.4% from the same period last year on 5.6% higher revenues.

Third, the Fed reduced the benchmark lending rate by 25 basis-points in its November FOMC meeting after cutting an aggressive 50 basis-points in the Fed fund rate in September. The Fed fund rate is currently in the range of 4.50-4.75% compared with a 23-year high of 5.25-5.5% till mid-September. The

CME FedWatch interest rate derivative tool currently shows that market participants have provided a 70% probability of another 25 basis-point rate cut in December.

Buy 5 Momentum Stocks With Strong Short-Term Upside

We have narrowed our search to five large-cap momentum stocks that have witnessed robust earnings estimate revisions in the last 30 days and have strong upside left for the rest of 2024. Each of our picks carries a Zacks Rank #2 (Buy) and has a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amazon.com Inc.

Amazon.com’s third-quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and AMZN’s growing adoption rate contributed well to AWS performance. Ultrafast delivery services and an expanding content portfolio were beneficial. The strengthening relationship with third-party sellers was a positive.

Robust advertising business contributed well. AMZN’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives for Amazon.com. Deepening focus on generative AI is a major plus. AMZN issued positive fourth-quarter 2024 guidance fueling investor enthusiasm.

Strong Price Upside Potential for AMZN Stock

The average short-term price target of brokerage firms represents an increase of 13.7% from the last closing price of $206.84. The brokerage target price is currently in the range of $197-$285. This indicates a maximum upside of 37.8% and no downside.

Amazon.com has an expected revenue and earnings growth rate of 10.8% and 78.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% in the last seven days.

KLA Corp.

KLA is benefiting from the strong performance of the wafer inspection business owing to rising demand for advanced wafer inspection applications in leading-edge technology development. KLAC is benefiting from the higher volume of wafer manufacturing, more complex designs, larger die and chip size driven by strong AI adoption.

Increasing advanced packaging demands which support an increase in process control intensity bodes well for KLAC. Growing investments across multiple nodes and rising capital intensity in Foundry & Logic are driving top-line growth. KLAC's emphasis on the integration of AI into its solutions has driven its outperformance in the semiconductor market.

Impressive Price Upside Potential for KLAC Shares

The average short-term price target of brokerage firms represents an increase of 20.8% from the last closing price of $666.03. The brokerage target price is currently in the range of $620-$977. This indicates a maximum upside of 46.7% and a maximum downside of 6.9%.

KLAC has an expected revenue and earnings growth rate of 19.6% and 30.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 6.1% in the last 30 days.

Newmont Corp.

Newmont is making notable progress with its growth projects. NEM is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. NEM also remains focused on improving operational efficiency and returning value to shareholders. NEM is making notable progress with efficiency improvement programs.

Gold prices are hitting record highs this year, and the yellow metal has been among the best-performing assets. The rally has been driven by strong demand from central banks, a dovish Fed interest rate outlook, global uncertainties and a surge in safe-haven demand thanks to geopolitical tensions. Increased tensions in the Middle East and concerns over an economic slowdown also fueled safe-haven demand.

Robust Price Upside Potential for NEM Stock

The average short-term price target of brokerage firms represents an increase of 31.6% from the last closing price of $42.33. The brokerage target price is currently in the range of $47-$72.32. This indicates a maximum upside of 70.9% and no downside.

Newmont has an expected revenue and earnings growth rate of 53.3% and 95.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.1% in the last 30 days.

Uber Technologies Inc.

Uber Technologies’ Delivery business benefits from robust online order volumes. UBER’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations is also aiding UBER. For third-quarter 2024, UBER expects gross bookings of $40.25-$41.75 billion.

Apart from the recovery in Mobility operations and the strong performance of the Delivery unit, UBER’s focus on financial discipline is encouraging as well. For third-quarter 2024, adjusted EBITDA is estimated between $1.58 billion and $1.68 billion.

Excellent Price Upside Potential for UBER Shares

The average short-term price target of brokerage firms represents an increase of 26.8% from the last closing price of $71.65. The brokerage target price is currently in the range of $66 -$120. This indicates a maximum upside of 67.5% and a maximum downside of 7.9%

Uber Technologies has an expected revenue and earnings growth rate of 17.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.6% in the last seven days.

S&P Global Inc.

S&P Global remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop products. The latest service launches have been aiding SPGI’s growth.

Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share of SPGI. A current ratio of more than 1 indicates that SPGI will easily pay off its short-term obligations.

Solid Price Upside Potential for SPGI Shares

The average short-term price target of brokerage firms represents an increase of 15.8% from the last closing price of $507.26. The brokerage target price is currently in the range of $535 - $620. This indicates a maximum upside of 22.2% and no downside.

S&P Global has an expected revenue and earnings growth rate of 12% and 20.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% in the last seven days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Zacks Investment Research

With just one and a half months of trading left in 2024, Wall Street is likely to repeat its impressive rally of 2023. Last year, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 13.7%, 23.9% and 43.4%, respectively. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have advanced 17.4%, 26.5% and 30.7%, respectively.

During the astonishing rally of the past 22 months, several stocks, especially corporate bigwigs have skyrocketed. Despite this phenomenal growth of U.S. stock markets, stocks of various giant corporates have provided returns that are below the return of the broad-market index – the S&P 500.

We recommend investing in such stocks that boast strong momentum and carry a favorable Zacks Rank. Moreover, these stocks have double-digit upside potential in the short term. Five such stocks are - Amazon.com Inc. AMZN, KLA Corp. KLAC, Newmont Corp. NEM, Uber Technologies Inc. UBER and S&P Global Inc. SPGI.

Momentum Likely to Continue

Momentum investing calls for continued appraisal of stocks, ensuring that an investor does not pick a beaten-down name or overlook a thriving one. Momentum investors buy high on the anticipation that a stock will only ascend in the short to intermediate term.

We are still not clear about economic policies (especially imposition of tariff and lowering of corporate tax) of the President-elect Donald Trump for his second term. While this could cause occasional market fluctuations, the overall movement of Wall Street is likely to remain northbound due to three main drivers.

First, the fundamentals of the U.S. economy are rock-solid. U.S. GDP grew at 1.6%, 3% and 2.8%, respectively, in the first three quarters of 2024. On Nov 7, the Atlanta Fed GDPNow tracker estimated 2.5% GDP growth for the fourth quarter. These numbers are higher than the pre-pandemic period.

Second, as of Nov 8, 452 S&P 500 companies reported their quarterly financial numbers. Total earnings of these companies are up 7.1% year over year on 5.5% higher revenues, with 73.5% beating earnings per share (EPS) estimates and 61.5% beating revenue estimates.

Looking at the third quarter as a whole, total earnings of the S&P 500 Index are expected to be up 7.4% from the same period last year on 5.6% higher revenues.

Third, the Fed reduced the benchmark lending rate by 25 basis-points in its November FOMC meeting after cutting an aggressive 50 basis-points in the Fed fund rate in September. The Fed fund rate is currently in the range of 4.50-4.75% compared with a 23-year high of 5.25-5.5% till mid-September. The

CME FedWatch interest rate derivative tool currently shows that market participants have provided a 70% probability of another 25 basis-point rate cut in December.

Buy 5 Momentum Stocks With Strong Short-Term Upside

We have narrowed our search to five large-cap momentum stocks that have witnessed robust earnings estimate revisions in the last 30 days and have strong upside left for the rest of 2024. Each of our picks carries a Zacks Rank #2 (Buy) and has a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our five picks in the past three months.