Newmont Corp (NYSE:NEM) Shows Strong High-Growth Momentum and Technical Breakout Potential

Investors often look for stocks that mix strong earnings momentum with positive technical setups, a strategy made popular by methods like CANSLIM and Minervini. These methods focus on finding companies with fast growth, rising estimates, and improving profit margins, while also checking that the stock is in a clear uptrend with a healthy consolidation pattern. One stock currently fitting these conditions is NEWMONT CORP (NYSE:NEM), which shows strong high-growth momentum along with a good technical breakout setup.

High Growth Momentum Fundamentals

Newmont Corp’s growth numbers match well with the standards used in the ChartMill High Growth Momentum Rating, which checks short-term earnings momentum, sales growth, and analyst outlook. Key points include:

• Strong EPS Growth:

  • Year-over-year EPS growth (TTM) is at 129.6%, while the latest quarter saw a 98.6% rise compared to the same period last year.
  • Past quarters also showed strong growth, with increases of 127.3%, 180.0%, and 125.0% year-over-year.
  • Future estimates point to more growth, with next quarter’s EPS expected to climb 63.5%.

• Revenue Growth:

  • Revenue growth (TTM) is up 38.4%, with recent quarterly sales rising 20.8% year-over-year.
  • Earlier quarters saw sales grow by 24.5%, 42.8%, and 84.7%.

• Improving Profit Margins:

  • The latest quarter’s profit margin reached 38.8%, up from 37.7% in the previous quarter and much higher than the 17.9% from the last full fiscal year.
  • Free cash flow per share jumped 1,700% over the past year, showing strong financial health.

• Positive Estimate Changes & Surprises:

  • Analysts have raised next-year EPS estimates by 18.4% over the past three months, showing growing confidence.
  • The company has beaten EPS estimates in three of the last four quarters, with an average surprise of 20.0%.

These numbers explain why Newmont has a High Growth Momentum Rating of 6, showing solid earnings growth and rising estimates—key features growth investors look for.

Technical Strength & Setup Quality

Beyond fundamentals, Newmont’s technical picture adds to its appeal. According to ChartMill’s technical report, the stock has a perfect Technical Rating of 10, reflecting strong price action and relative performance. Key details include:

• Trend Strength:

  • Both short-term and long-term trends are positive, with the stock trading near the top of its 52-week range.
  • It beats 85% of all stocks over the past year, showing strong market leadership.

• Consolidation & Breakout Potential:

  • The Setup Rating of 7 suggests a healthy pullback within an uptrend, with lower volatility and clear support levels.
  • Support areas are between $60.11,$60.71 (near the 20-day SMA) and $56.76,$58.18 (backed by multiple moving averages).
  • A move above $66.58 (the recent 10-day high) could signal the next upward move, with a stop-loss level around $60.10.

Why This Combination Matters

High-growth momentum strategies work best when a stock’s strong fundamentals are matched by technical strength. Newmont’s earnings growth, margin improvement, and rising estimates fit the "growth" side, while its technical setup offers a good risk/reward entry point—important for limiting losses in volatile markets.

Find More High-Growth Breakout Candidates

For investors looking for similar opportunities, our High Growth Momentum Breakout Setups Screen filters for stocks with strong growth ratings and actionable technical patterns.

Disclaimer: This analysis is not investment advice. Always do your own research and consider risk management before trading.