$43.47
arrow_drop_up1.11%Is NEM a Buy or Sell based on AI Analysis?
Fundamental Analysis
Newmont Goldcorp Corp has a strong market ownership score of 30, indicating a relatively high level of institutional ownership valued at 71.6%. This suggests that the company is well-supported by institutional investors who have confidence in its potential for growth and profitability. Additionally, the company's industry score of 76 reflects its strong standing within the basic materials sector, with notable metrics such as a low debt-to-equity ratio of 0.33 and a solid return on equity of -10.23%. Furthermore, Newmont Goldcorp Corp's financial performance is highlighted by its robust revenue of $11.81B and gross profit of $1.26B, demonstrating a healthy top-line growth and effective cost management. The company's free cash flow margin of 0.82% is indicative of its ability to generate cash after accounting for operating expenses, which can be reinvested in the business for future growth initiatives. Moreover, the company's solid dividend yield of 3.13% and annual dividends per share of $1.45 signal a commitment to returning value to shareholders, bolstering investor confidence in the company's long-term sustainability and profitability.
Positive Development
Newmont's stock has shown resilience in a turbulent market, with a 2.21% rise on a positive trading session for the stock market. Newmont's stock has been highlighted as a Bull by Zacks, indicating a positive sentiment among investors. Newmont's dividend yield is 5.5%, which is attractive to investors seeking stable income.
Negative Development
Newmont's stock price has been on a downward trend since the beginning of February, with a significant drop from 33.19 to 30.01. The company's earnings are expected to be below the market's expectations, which could lead to a negative reaction from investors. Newmont's financial health is not in the best shape, as evidenced by negative EBIT, EPS, and net margin.
Technical Analysis
Newmont Goldcorp Corp (NEM) exhibits a technical analysis that suggests a bullish trend. The stock has shown a positive price change of 4.79% and a seven-day price change percent of 8.99%. Additionally, the stock has a technical rating of "NEUTRAL" with three technical buy indicators - CCI, ATR, and WILLR, and zero sell indicators. The stock also has a strong market score of 59, indicating potential growth opportunities. Furthermore, the stock sector of Basic Materials has seen a substantial change of 28.66% in the past year, indicating positive market sentiment towards the company. Moreover, Newmont Goldcorp Corp has a strong market ownership score of 30, suggesting a significant institutional ownership value of 71.6%. The stock also has a positive analyst forecast price change percent of 113.37%, indicating a positive outlook for future price performance. Additionally, the company pays dividends with a trailing annual dividend yield of 3.13%. Overall, the technical analysis of Newmont Goldcorp Corp suggests a favorable market sentiment and potential growth opportunities for investors.
Conclusion and recommendation
Based on the data provided, Newmont Goldcorp Corp (NEM) appears to be a solid investment option. The company has a strong market position, as evidenced by its market cap of $38.57B and annual revenue of $11.81B. Additionally, NEM has a healthy dividend yield of 3.13% and a low debt-to-equity ratio of 0.33, indicating strong financial stability. The company's stock performance has also been impressive, with a seven-day price change of 8.99% and a one-month price change of 0.36%. Moreover, NEM's technical rating is neutral, suggesting a balanced risk-return profile for potential investors. In conclusion, Newmont Goldcorp Corp presents a compelling investment opportunity for those looking for exposure to the Basic Materials sector. With a history of consistent revenue growth and a focus on shareholder returns through dividends, NEM offers a reliable option for long-term investors. While the company does face challenges such as negative net income and a low return on equity, its strong market position and stable financials make it a promising addition to a diversified investment portfolio. Investors should consider NEM for its potential for capital appreciation and dividend income while monitoring industry trends and company developments.