Newmont (NEM) Stock Jumps 6%: Will It Continue to Soar?
Newmont Corporation (NEM) shares rallied 6% in the last trading session to close at $64.95. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.3% gain over the past four weeks.
NEM’s shares rallied after gold prices climbed to two-month high on worries over inflation as U.S. Treasury yields slipped. The bullion also gained as a weaker dollar and geopolitical tensions surrounding Ukraine boosted safe-haven demand.
This gold and copper miner is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of -29.3%. Revenues are expected to be $3.31 billion, down 2.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Newmont, the consensus EPS estimate for the quarter has been revised 18% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NEM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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