The current recommendation of Hold for Newmont Mining Corp (NYSE:NEM) is derived using the analytical processes imbedded in the Portfolio Grader stock evaluator. The methodology for fundamental and quantitative metrics used in this analytical tool researches and ranks nearly 5,000 stocks each week. NEM has been downgraded from a Buy to a Hold in the last week. The Hold recommendation, which was recently downgraded from a Buy to Hold, for Newmont Mining Corp resulted from a proprietary process of evaluation which generated outcomes that were above average in 3 areas: a ranking in its sector group that is in the top half, ranking in its industry group that is in the top half, and a mathematical computation of risk/reward that is better than average; and produced below average conclusions in 3 areas: an economic sector rated below average in attractiveness, an industry group rated below average in attractiveness, and analytical scoring that is near average.
NEM is one of the 151 companies in the GICS Non-Energy Minerals sector and is a member of the 60 company Precious Metals GICS industry group within this sector. The market value of NEM is $20.8 billion which places it in the top 10% of its industry group The ranking for NEM by Portfolio Grader places it 24 among the 60 companies in this industry group, giving it an above-average position.
Portfolio Grader currently ranks the Non-Energy Minerals sector number 17 among the 20 sectors in its universe putting it in the bottom quartile of all the GICS sectors. The Precious Metals industry group is ranked 111 among the 129 industry groups within the GICS sectors, placing it well below-average in terms of the Proprietary Quantitative Score scoring system.
NEM has achieved above-average scores in 3 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average scores in 5 of the areas evaluated in the ranking of company stocks.
NEM's operational scores provide mixed results with rankings for sales growth and earnings growth that are below average, while the score for operating margin is above average. Scores for visibility of earnings are mixed, with rankings for earnings surprises and earnings revisions that are worse than average, while the score for earnings momentum is better than average. NEM's metric for cash flow is better than its industry group average but its ranking for return on equity is below-average. These fundamental scores give Newmont Mining a position in the top half of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to gauge NEM's shares from the aspect of risk/reward. This unique scoring methodology considers the relative value of NEM's shares based on the recent $36.61 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, the company currently scores as average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.