Denver-based gold mining firm Newmont's stock climbed to a 52-week high Wednesday, its highest price in about three years.
Newmont will release Q2 earnings Thursday after the market closes. Last year Newmont was the world's largest gold producer in terms of number of ounces mined, according to a Forbes report.
New High, Strong Momentum For Newmont
Also on Wednesday, Newmont stock reached an important technical benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 82, up from 77 the day before.
Market research shows that the stocks that go on to make the biggest gains tend to have an RS Rating above 80 as they begin their biggest runs. With the gold sector red-hot, prospects for Newmont generally look good.
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Based on its quarterly reports this past year, Newmont has a roughly $20 billion annual sales run rate, and rising. Although many mining companies are headquartered in Canada, South Africa and China, Denver-based Newmont is a leader in the U.S. and globally.
Among its other key ratings Newmont has a decent 89 EPS Rating out of 99, and an outstanding 97 Composite Rating. The IBD Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better. The 97 RS Rating places Newmont in the top 3% of all stocks, regardless of industry.
Newmont over the last four quarters reported earnings gains of 118%, 125%, 204% and 127% last quarter to $1.25 per share. Revenue growth over that period averaged about 52%.
One yellow flag is its D Accumulation/Distribution Rating, showing big funds are selling more of its shares than buying. Perhaps there is profit-taking after its long run higher. Based on its strong fundamentals and surging stock price, look for that rating to improve to C or above.
Newmont completed a first-stage cup-with-handle base on June 13, rising above a 57.16 buy point. That it's a first-stage base is a bullish indicator. Early stage bases are more likely to succeed.
After Breakout, Stock Keeps Climbing
Its stock has continued rising after the breakout and traded around 61 Wednesday afternoon, down for the day but far above the 36.86 low at the bottom of the cup in December.
Newmont earns the No. 15 rank among its peers in the 80-stock Mining-Gold/Silver/Gems industry group, according to IBD research. Agnico-Eagle Mines, AngloGold Ashanti and Barrick Mining are among the top five highly rated stocks in the group.
The exclusive Relative Strength Rating from Investor's Business Daily identifies price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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