NEM stock: buy or sell?

NEM stock price: $38.50 -0.08% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

3

Newmont Mining closed today at $38.50 and stayed steady a tight -0.08%.

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 setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean NEM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.
Is NEM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-19TD Securitiesn/aAction List Buy
2019-7-3BMO Capital MarketsOutperformMarket Perform
2019-6-25TD Securitiesn/aAction List Buy
2019-5-23CitigroupNeutralBuy
2019-4-9BarclaysOverweightOverweight
2019-4-26Raymond Jamesn/aOutperform
2019-4-26Raymond Jamesn/aOutperform
2019-4-10Deutsche Bankn/aHold
2019-3-5Raymond Jamesn/aOutperform
2019-3-28Barclaysn/aBuy
2019-3-26Raymond Jamesn/aOutperform
2019-3-19B. RileyNeutralNeutral
2019-3-19B. Rileyn/aNeutral
2019-3-12Raymond Jamesn/aOutperform
2019-2-22Raymond Jamesn/aOutperform

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%).

NEM stock chart (daily)

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 chart (weekly)

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:
NEM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-19TD SecuritiesLowers Target$52.00$50.00-3.8%
2019-7-3BMO Capital MarketsInitiatesn/a$45.00-
2019-6-25TD SecuritiesRaises Target$46.00$47.002.2%
2019-4-9BarclaysRaises Target$39.00$41.005.1%
2019-4-26Raymond JamesSet Price Targetn/a$47.00-
2019-4-26Raymond JamesReiteratesn/a$47.00-
2019-4-10Deutsche BankReiteratesn/a$36.00-
2019-3-5Raymond JamesLowers Target$48.00$47.00-2.1%
2019-3-28BarclaysReiteratesn/a$39.00-
2019-3-26Raymond JamesSet Price Targetn/a$47.00-
2019-3-19B. RileySet Price Targetn/a$38.40-
2019-3-19B. RileyInitiatesn/a$38.40-
2019-3-12Raymond JamesSet Price Targetn/a$47.00-
2019-2-22Raymond JamesSet Price Targetn/a$48.00-
(in average)$46.30$44.10-5.0%
Moving in a range from $50.00 and $36.00, the price prediction for Newmont Mining stock is $44.10. In average, analysts' outlook on NEM price target is negative, downsizing the target by a -5.00% from previous estimations.

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.
NEM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.35n/a
2017-Q32017-10-260.330.356.1%
2017-Q42018-02-220.40.40.0%
2018-Q12018-04-260.330.356.1%
2018-Q22018-07-260.240.268.3%
2018-Q32018-10-250.220.3350.0%
2018-Q42019-02-210.230.473.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/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%.

NEM annual Sales and Income evolution
YearSalesYoYIncome/(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 M5.99%$220 M2.8%-56.69%
2016$6,711 M-13.17%$-627.00 M-9.3%-385.00%
2017$7,379 M9.95%$-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.
NEM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,880 M-$192 M10.2%-
2017-Q3$1,870 M-0.53%$213 M11.4%10.94%
2017-Q4$1,904 M1.82%$-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$1,726 M3.85%$-145 M-8.4%-149.66%
2018-Q4$2,048 M18.66%$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:

NEMAAAEMAUBVN
Market cap$20.5 B$3.4 B$13.9 B$8.9 B$3.7 B
Total shares533.5 M185.5 M234.8 M410.1 M254.0 M
Float shares816.7 M185.0 M236.3 M412.2 M202.5 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 selling0.0%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 patternlt11a
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:
Stock3m6m12m
NEMNewmont Mining21.11%9.07%25.82%
AAAlcoa-19.73%-38.78%-57.48%
AEMAgnico Eagle Mine...44.78%37.16%66.27%
AUAngloGold Ashanti86.66%46.75%178.79%
BVNBuenaventura Mini...1.38%-12.53%16.26%
FCXFreeport-McMoran-8.87%-30.28%-35.81%
GFIGold Fields49.74%40.00%130.56%
GOLDBarrick Gold56.51%43.38%80.62%
RGLDRoyal Gold48.68%42.90%65.22%
SBGLSibanye Gold64.00%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.

Latest NEM stock news