Newmont Corporation (NEM) shares rallied 8.4% in the last trading session to close at $48.75. 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 3.6% gain over the past four weeks.
NEM's shares rallied on a surge in gold prices on safe-haven demand after President Trump hiked tariffs on China to 125%, stoking fears of deeper trade disruptions.
This gold and copper miner is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +34.6%. Revenues are expected to be $4.54 billion, up 13% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Newmont, the consensus EPS estimate for the quarter has been revised 14.5% 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 >>>>
Newmont is part of the Zacks Mining - Gold industry. Agnico Eagle Mines (AEM), another stock in the same industry, closed the last trading session 5.7% higher at $105.80. AEM has returned -0.4% in the past month.
Agnico's consensus EPS estimate for the upcoming report has changed +16.4% over the past month to $1.09. Compared to the company's year-ago EPS, this represents a change of +43.4%. Agnico currently boasts a Zacks Rank of #3 (Hold).
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Newmont Corporation (NEM): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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