Analysts are slightly cautious on Newmont stock, with eight of 22 brokerages giving the shares a Hold rating while 12 others have Buy or Strong Buy ratings. At a share price of around $45.00, the upside potential based on a median price target of $56.00 is 24.4%. At the high price target of $64.00, the upside potential is 42.2%.
Second-quarter revenue is forecast at $2.89 billion, up 7.9% sequentially but down 5.6% year over year. Adjusted EPS are forecast at $0.50, up 20.0% sequentially and 8.7% higher year over year. For the full 2023 fiscal year, estimates call for EPS of $2.38, up 28.5%, on sales of $12.43 billion, up 4.4%.
Newmont stock trades at 19.0 times expected 2023 earnings, 16.8 times estimated 2024 earnings of $2.70 and 18.0 times estimated 2025 earnings of $2.52 per share. The 52-week trading range is $37.45 to $60.08. Newmont pays an annual dividend of $1.60 (yield of 3.56%). Total shareholder return for the past year was negative 13.54%.
Taiwan Semiconductor
Demand for computer chips has been declining for most of 2023, and the decline is weighing on prospects for chipmakers like Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM), better known as TSMC.
The contract chip manufacturer posted a sequential revenue drop of 20% in the first quarter, and while EPS beat estimates, the sequential decline was nearly 30%. Some analysts see revenue growth slowing by 10% to 15% per quarter until next year. It is questionable whether even a soft landing for the global economy or more craziness in AI will lift demand for more semiconductors.
Of 30 analysts covering the stock, 27 have Buy or Strong Buy ratings. At a price of around $103.00 per American depositary receipt (ADR), the upside potential based on a median price target of $108.00 is 4.9%. At the high price target of around $132.00, the upside potential is about 28.1%. Each ADR is equal to five ordinary shares traded in Taiwan.
For TSMC’s second quarter, analysts are looking for revenue of $15.45 billion, down 7.2% sequentially and 14.0% lower year over year. Adjusted earnings per ADR are expected to come in at $0.22, down 17.7% sequentially and by 29.0% year over year. For the full 2023 fiscal year, earnings per ADR are forecast at $1.00, down 21.7%, on revenue of $69.18 billion, down 6.1%.
TSMC ADRs trade at 18.6 times expected 2023 EPS, 15.1 times estimated 2024 earnings of $1.23 and 12.6 times estimated 2025 earnings of $1.48 per share. The 52-week range is $59.43 to $110.69, and the company pays an annual dividend of $1.78 (yield of 1.69%). Total shareholder return for the past 12 months was 24.72%.
Originally published at 24/7 Wall St.
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