From a technical perspective, Newmont Corporation (NEM) is looking like an interesting pick, as it just reached a key level of support. NEM recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of NEM have been moving higher over the past four weeks, up 10.2%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that NEM could be poised for a continued surge.
The bullish case only gets stronger once investors take into account NEM's positive earnings estimate revisions. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on NEM for more gains in the near future.
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Newmont Corporation (NEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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