Newmont Corporation : Attractive price levels

03/14/2023 | 02:22am EDT

long trade Live

Entry price : 45.3$ | Target : 53$ | Stop-loss : 41$ | Potential : 17%

After several weeks of decline, shares in Newmont Corporation are approaching an important technical support area around 40.74 USD on the weekly chart. These levels represent attractive entry points. Investors have an opportunity to buy the stock and target the $ 53.

Summary

• Overall, the company has poor fundamentals for a medium to long-term investment strategy.
• The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.

Strengths

• The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.

The company is in a robust financial situation considering its net cash and margin position.

Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.

Weaknesses

• According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
• With a 2023 P/E ratio at 27.23 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
• For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
• For the past year, analysts have significantly revised downwards their profit estimates.
• The overall consensus opinion of analysts has deteriorated sharply over the past four months.
• Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
• The company's earnings releases usually do not meet expectations.

Ratings chart

Subsector Gold Mining

1st jan. Capitalization (M$) Investor Rating NEWMONT CORPORATION 2.86% 38 573 BARRICK GOLD CORPORATION 9.61% 32 474 AGNICO EAGLE MINES LIMITED -0.60% 23 602 WHEATON PRECIOUS METALS COR.. 22.16% 21 271 NEWCREST MINING LIMITED 27.28% 15 545 ANGLOGOLD ASHANTI LIMITED 18.88% 9 277 NORTHERN STAR RESOURCES LIM.. 5.68% 8 803 ROYAL GOLD, INC. 12.17% 8 300 YAMANA GOLD INC. 7.18% 5 633 KINROSS GOLD CORPORATION 8.15% 5 317 ZHAOJIN MINING INDUSTRY COM.. 40.55% 5 083

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