Newmont Corp. (NYSE:NEM) Presents a High-Growth Momentum and Technical Breakout Opportunity

For investors looking to join solid earnings momentum with well-timed technical entry signals, a multi-factor screening method can be an effective instrument. One approach is to search for stocks that show firm fundamental growth traits, as judged by a High Growth Momentum (HGM) rating, while also presenting favorable technical condition and a promising price formation. This tactic seeks to find companies that are not just seeing quickening business results but are also positioned in a way that hints at a possible short-term price rise, matching the "what" to buy with the "when" to buy it.

NEWMONT CORP (NYSE:NEM) appears from such a filter, offering a situation where a usually value-focused gold miner is displaying measures commonly linked with fast-growth companies, as its chart indicates a technically solid base.

Evaluating the Growth Momentum

The High Growth Momentum rating combines a few main fundamental drivers, and Newmont's score of 6 shows force in several parts. For momentum-focused investors, steady earnings growth and positive surprises are vital, as they frequently come before more analyst improvements and institutional buying.

• Notable Earnings Increase: The company's trailing twelve-month (TTM) EPS has risen by a notable 124.4% year-over-year. This is not a single-quarter event; recent quarterly EPS growth numbers have been steadily firm, including 111.1% in the latest quarter.
• Steady Earnings Surprises: Newmont has surpassed analyst EPS forecasts in all of the past four quarters, with an average surprise of 26.3%. This habit of beating estimates builds trust and can lead to positive forecast changes.
• Strong Cash Flow Creation: A sign of financial soundness, Free Cash Flow per share has climbed sharply, showing growth of 718.6% over the past year. This gives the company clear room for dividends, lowering debt, or more spending.
• Growing Profitability: The company's profit margin in the last reported quarter was 33.2%, showing a large gain from 24.8% three quarters before. A growing margin signals control over pricing and operational effectiveness, which are prized by growth investors.

While sales growth has eased from very high marks in earlier quarters to a still-good 20.0% last quarter, the potent mix of fast EPS growth, cash flow creation, and margin growth forms an attractive fundamental view for momentum-based plans.

Technical Condition and Formation Quality

A firm growth narrative must be supported by the price movement, and Newmont's technical picture is distinctly solid. Based on its detailed technical report, the stock receives a complete Technical Rating of 10. This highest score points to excellent technical condition across various periods.

• Forceful Uptrend: Both the long-term and short-term trends are scored as positive. The stock is priced above all its important moving averages (20, 50, 100, and 200-day SMAs), which are all in an upward arrangement.
• Market Outperformance: With a relative strength percentile of 97.4, Newmont is doing better than almost all other stocks in the market over the past year. It also beats 72% of its group in the Metals & Mining industry.
• Nearness to Highs: The stock is now priced close to its 52-week high, a common feature of leading stocks in a positive trend.

Maybe more significant for timing an entry, the stock has a Setup Rating of 7. This shows the price is settling within its recent band, giving a possible chance. The technical analysis summary states that "prices have been consolidating lately and the volatility has been reduced," which often comes before a continuation of the existing trend. A clear support area is seen just below the present price, allowing for a sensible place to set a protective stop-loss order.

A Merging Chance

Newmont Corp. presents a interesting merging for the high-growth momentum method. It fits the central fundamental needs the plan looks for—major earnings speed, positive surprises, and solid cash flow growth—while its chart displays the signs of a market leader in a maintained uptrend. The present consolidation, as seen in the setup rating, gives a setting to assess possible entry points in line with the continuing positive trend.

This mix of elements is what focused screens are made to find. For investors wanting to examine other securities that fit these particular needs of firm growth momentum, good technicals, and a timely formation, more results can be seen using this High Growth Momentum Breakout Setups screen.

---

Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investing involves risk, including the potential loss of principal. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment decisions.