NEM stock: buy or sell?
Updated on:
August 22nd, 2019
3
Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver.
Should I buy NEM stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Newmont Mining stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Newmont Mining stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we detected 15 ratings published for NEM stock in the last month. The general sentiment of these ratings is bullish for NEM stock, with 9 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-19 | TD Securities | n/a | Action List Buy |
| 2019-7-3 | BMO Capital Markets | Outperform | Market Perform |
| 2019-6-25 | TD Securities | n/a | Action List Buy |
| 2019-5-23 | Citigroup | Neutral | Buy |
| 2019-4-9 | Barclays | Overweight | Overweight |
| 2019-4-26 | Raymond James | n/a | Outperform |
| 2019-4-26 | Raymond James | n/a | Outperform |
| 2019-4-10 | Deutsche Bank | n/a | Hold |
| 2019-3-5 | Raymond James | n/a | Outperform |
| 2019-3-28 | Barclays | n/a | Buy |
| 2019-3-26 | Raymond James | n/a | Outperform |
| 2019-3-19 | B. Riley | Neutral | Neutral |
| 2019-3-19 | B. Riley | n/a | Neutral |
| 2019-3-12 | Raymond James | n/a | Outperform |
| 2019-2-22 | Raymond James | n/a | Outperform |
NEM stock analysis
Daily outlook
Newmont Mining stayed stable a tight -0.08% and closed at $38.50.
Newmont Mining shares stayed stable -0.08% to $38.50 today. Since last May when NEM stock price broke up the SMA200d line, it gained $7.03 (22.34%). Since SMA50d and SMA100d crossed up on July, NEM price climbed $0.08 per share (0.21%).
Weekly outlook
Shares of Newmont Mining stayed stable a neutral -0.21% this week. Early August NEM boosted a brilliant 5.43% in just one week. Late July NEM plunged a scary -5.39% in just one week.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $40.33 resistance. Since price and SMA40w lines crossed up late May, NEM climbed $6.71 (21.11%). Since SMA20d and SMA40w crossed up by mid March, NEM price climbed $6.30 per share (19.57%).
NEM stock price history
NEM IPO was on March 17th, 1980 at $6.47 per share1. Since then, NEM stock grew a 495.10%, with a yearly average of 12.70%. If you had invested right after NEM's IPO a $1,000 in NEM stock in 1980, it would worth $4,951.00 today.
1: Adjusted price after possible price splits or reverse-splits.
NEM stock historical price chart
NEM stock reached 52-week highs on Jul/23 at $40.33, and all-time highs 2011-11-09 with a price of 62.39.
NEM stock price target is $44.10
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 14 price predictions for NEM stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-19 | TD Securities | Lowers Target | $52.00 | $50.00 | -3.8% |
| 2019-7-3 | BMO Capital Markets | Initiates | n/a | $45.00 | - |
| 2019-6-25 | TD Securities | Raises Target | $46.00 | $47.00 | 2.2% |
| 2019-4-9 | Barclays | Raises Target | $39.00 | $41.00 | 5.1% |
| 2019-4-26 | Raymond James | Set Price Target | n/a | $47.00 | - |
| 2019-4-26 | Raymond James | Reiterates | n/a | $47.00 | - |
| 2019-4-10 | Deutsche Bank | Reiterates | n/a | $36.00 | - |
| 2019-3-5 | Raymond James | Lowers Target | $48.00 | $47.00 | -2.1% |
| 2019-3-28 | Barclays | Reiterates | n/a | $39.00 | - |
| 2019-3-26 | Raymond James | Set Price Target | n/a | $47.00 | - |
| 2019-3-19 | B. Riley | Set Price Target | n/a | $38.40 | - |
| 2019-3-19 | B. Riley | Initiates | n/a | $38.40 | - |
| 2019-3-12 | Raymond James | Set Price Target | n/a | $47.00 | - |
| 2019-2-22 | Raymond James | Set Price Target | n/a | $48.00 | - |
| (in average) | $46.30 | $44.10 | -5.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
On February, Newmont Mining reported its latest financial data, posting a dazzling climb for the Earnings per Share (EPS) ratio. Analyst were expecting $0.23 per share, but Newmont Mining posted $0.40.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.35 | n/a |
| 2017-Q3 | 2017-10-26 | 0.33 | 0.35 | 6.1% |
| 2017-Q4 | 2018-02-22 | 0.4 | 0.4 | 0.0% |
| 2018-Q1 | 2018-04-26 | 0.33 | 0.35 | 6.1% |
| 2018-Q2 | 2018-07-26 | 0.24 | 0.26 | 8.3% |
| 2018-Q3 | 2018-10-25 | 0.22 | 0.33 | 50.0% |
| 2018-Q4 | 2019-02-21 | 0.23 | 0.4 | 73.9% |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual turnover report draw a disappointing drop down of -1.71% to $7,253.00 M dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) rose a 6.25% to 4.70%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $8,350 M | - | $-2,520.00 M-30.2% | - |
| 2014 | $7,292 M | -12.67% | $508 M7.0% | -120.16% |
| 2015 | $7,729 M | 5.99% | $220 M2.8% | -56.69% |
| 2016 | $6,711 M | -13.17% | $-627.00 M-9.3% | -385.00% |
| 2017 | $7,379 M | 9.95% | $-114.00 M-1.5% | -81.82% |
| 2018 | $7,253 M | -1.71% | $341 M4.7% | -399.12% |
Quarterly financial results
Newmont Mining reported $2,048.00 million in revenues for 2018-Q4, a 18.66% improvement compared to previous quarter. Reported quarter income marked $2.00 million with a profit margin of 0.10%. Profit margin soared a 8.50% compared to previous quarter when profit margin was -8.40%. When comparing sales to same quarter last year, Newmont Mining sales marked a pretty good gain and jumped a 7.56%. Looking back to recent quarterly results, Newmont Mining posted 2 positive quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $1,880 M | - | $192 M10.2% | - |
| 2017-Q3 | $1,870 M | -0.53% | $213 M11.4% | 10.94% |
| 2017-Q4 | $1,904 M | 1.82% | $-526 M-27.6% | -346.95% |
| 2018-Q1 | $1,817 M | -4.57% | $192 M10.6% | -136.50% |
| 2018-Q2 | $1,662 M | -8.53% | $292 M17.6% | 52.08% |
| 2018-Q3 | $1,726 M | 3.85% | $-145 M-8.4% | -149.66% |
| 2018-Q4 | $2,048 M | 18.66% | $2 M0.1% | -101.38% |
| 2019-Q1 | $1,803 M | -11.96% | $87 M4.8% | 4,250.00% |
Newmont Mining ownership
When you are planning to buy a stock, it's always worth to review its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Newmont Mining, 0.55% of all outstanding shares are owned by its staff.
Bearish positions for NEM stock account 0.00%, no big difference from last month.
For a better context understanding, the following table shows ownership data compared to other related companies:
| NEM | AA | AEM | AU | BVN | |
|---|---|---|---|---|---|
| Market cap | $20.5 B | $3.4 B | $13.9 B | $8.9 B | $3.7 B |
| Total shares | 533.5 M | 185.5 M | 234.8 M | 410.1 M | 254.0 M |
| Float shares | 816.7 M | 185.0 M | 236.3 M | 412.2 M | 202.5 M |
| - Institutional holdings (%) | 91.0% | 0.0% | 76.2% | 42.1% | 64.7% |
| - Insider holdings (%) | 0.5% | 6.1% | 0.1% | 0.0% | 0.0% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
NEM summary
| Thursday, August 22nd, 2019 | |
|---|---|
| Open | $38.43 |
| Close | $38.50 |
| Day range | $38.30 - $38.76 |
| Previous close | $38.53 |
| Session gain | -0.08% |
| Average true range | $1.01 |
| 50d mov avg | $38.18 |
| 100d mov avg | $35.41 |
| 200d mov avg | $33.96 |
| Daily pattern | lt11a |
| Weekly pattern | lb02a |
Newmont Mining performance
Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Newmont Mining to Alcoa, Agnico Eagle Mines, AngloGold Ashanti, Buenaventura Mining, Freeport-McMoran, Gold Fields, Barrick Gold, Royal Gold and Sibanye Gold:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| NEMNewmont Mining | 21.11% | 9.07% | 25.82% |
| AAAlcoa | -19.73% | -38.78% | -57.48% |
| AEMAgnico Eagle Mine... | 44.78% | 37.16% | 66.27% |
| AUAngloGold Ashanti | 86.66% | 46.75% | 178.79% |
| BVNBuenaventura Mini... | 1.38% | -12.53% | 16.26% |
| FCXFreeport-McMoran | -8.87% | -30.28% | -35.81% |
| GFIGold Fields | 49.74% | 40.00% | 130.56% |
| GOLDBarrick Gold | 56.51% | 43.38% | 80.62% |
| RGLDRoyal Gold | 48.68% | 42.90% | 65.22% |
| SBGLSibanye Gold | 64.00% | 24.53% | 130.74% |
Newmont Mining competitors
One check before investing in any stock is to review a list of its competitors, in this case for Newmont Mining. We picked 9 companies as Newmont Mining competitors as they are in the same industry or have similar market objectives.- Alcoa (AA)
- Agnico Eagle Mines (AEM)
- AngloGold Ashanti (AU)
- Buenaventura Mining (BVN)
- Freeport-McMoran (FCX)
- Gold Fields (GFI)
- Barrick Gold (GOLD)
- Royal Gold (RGLD)
- Sibanye Gold (SBGL)
Latest NEM stock news
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- Seeking AlphaNewmont Mining: One Of My Preferred Senior Gold ProducersJuly 9, 2018