With gold hitting all-time highs it's no wonder that miners like Newmont are soaring. Newmont reported a 38% jump in earnings last quarter as revenue soared 50%. When building a watchlist, IBD recommends looking for stocks with an 80 or higher RS Rating. Newmont just met that criteria with an upgraded score of 83.
The 83 RS Rating means that Newmont stock outperformed 83% of all stocks for price performance over the past year, topping a key benchmark. Market research shows that the best stocks often have an 80 or higher RS Rating in the early stages of their moves.
Newmont stock dipped to a 29.42 low on Feb. 28 and in the last three months it's soared 49% to just below 44 Tuesday afternoon.
Newmont Stock Rising, With Long Road Ahead
However, Newmont stock is still far below its 86.37 high set in April 2022. That means it could have a long runway of growth if the market holds, but it will also have an uphill climb to get there.
Last quarter Newmont reported a 38% rise in EPS to 55 cents on a 50% increase in revenue to $4.02 billion. The prior quarter its EPS edged up 5% on 24% higher sales. On May 20 Newmont was cited in Gavin McMaster's Options column as a possible cover call option candidate.
Gold rose to $2,454.20 an ounce on Monday, an all-time high according to a Wall Street Journal report, amid prospects for lower interest rates and strong market demand for precious metals. Silver rose in sync with gold Monday.
"The two precious metals have a historical correlation, while silver also benefits from industrial demand, with solar-panel demand especially providing a tailwind," the Journal report said.
Meanwhile, highly rated Newmont stock also sports a terrific 97 Composite Rating, putting the Denver-based company's stock in the top 3% overall for a group of five telltale traits of winning stocks. Its EPS Rating is a mild 78 due to weak earnings early last year. Look for that to improve given its recent strong earnings.
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Newmont A Favorite Of Big Money Funds
Newmont has a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A superb and E awful. And the B+ Accumulation/Distribution Rating for Newmont stock shows that institutional buyers like mutual funds and ETFs are fairly heavy buyers of its stock.
Newmont stock earns the No. 16 rank among its peers in the 75-stock Mining-Gold/Silver/Gems industry group. Agnico-Eagle Mines, Harmony Gold Mining and Alamos Gold are among the top five highly rated stocks in the group. Additionally, the group as a whole has a best-possible A+ Group Relative Strength Rating.
IBD's unique RS Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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