Investors looking to join solid earnings momentum with positive technical patterns frequently use a multi-step screening process. One useful technique selects for stocks that show firm underlying growth basics, as judged by a High Growth Momentum (HGM) rating, while also showing good price trends and helpful chart formations, measured by Technical (TA) and Setup Ratings. This method tries to find companies where notable earnings acceleration could be about to start the next phase of a price increase, presenting a possible combination of basic and technical health.
NEWMONT CORP (NYSE:NEM) appears from such a screen, presenting a situation where a major gold producer shows traits that might interest growth-focused investors, together with a technically good chart ready for a possible price move.
Fundamental Growth Momentum
The High Growth Momentum rating judges short-term earnings and sales momentum, speed of change, and analyst views. Newmont's HGM rating of 6 shows a firm base of growth, supported by several important numbers from its latest financial reports:
- Notable Earnings Growth: The company's trailing twelve-month (TTM) EPS increased by about 98.6% year-over-year. Recent quarterly comparisons show this momentum stays firm, with EPS growth of 80% in the last quarter and over 111% in the quarter before.
- Firm Revenue Increase: Top-line growth backs the bottom-line results, with TTM revenue up 21.3% and steady quarterly sales growth near 20-25% over the past year.
- Positive Estimate Changes: Analyst belief is increasing, shown by a 21.2% upward change to next year's EPS estimates over the last three months. This is a key part of the HGM method, as rising estimates often come before more price gains.
- Steady Earnings Beats: Newmont has surpassed EPS estimates in each of the last four quarters, with an average beat of 25.4%. This history of beating expectations strengthens the positive momentum story.
For a high-growth momentum plan, these parts are important. They point to a company that is not only growing but doing so at a high or quickening speed, often surprising the market and drawing more investor notice.
Technical Health and Setup Condition
While firm basics give the reason, the technical view gives the timing guide. According to ChartMill's detailed technical report, Newmont now has a TA Rating of 8 and a Setup Rating of 7.
The high TA Rating of 8 shows very good technical condition. The report states that Newmont's long-term trend is positive, and its price results over the past year have been better than 89% of all stocks. The stock is trading above important rising moving averages, including the SMA100 and SMA200, which is typical of a good upward trend. This matches the screening aim of finding stocks already in a positive trend, raising the chance that a price move will happen within a larger rise.
Maybe more directly related for entry timing is the Setup Rating of 7. This score measures the quality of a possible pause or base pattern. The study shows that NEM has been trading in a pause range over the past month, with lower volatility—a common sign before a big price change. The report finds a clear resistance area just above the present price, near $119.64 to $120.90. A clear move above this area could show the beginning of a new upward phase. In contrast, a defined support area exists between $111.63 and $113.40, giving a sensible place for a protective stop-loss order. This organized price movement, with clear limits, is exactly what the setup rating aims to point out, offering a plan for risk-controlled entry.
A Joining Chance
Newmont Corp presents an interesting case for the high-growth momentum investor. It shows the needed earnings and sales speed, joined with positive analyst changes, that explain basic momentum. At the same time, its chart shows the stock is pausing within a firm upward trend, creating the conditions for a possible technical price move. This joining implies that the basic growth story could be getting ready to show itself again in the stock's price movement.
For investors using this method, Newmont stands for a candidate where the "reason to buy" (firm growth momentum) is backed by the "time to buy" (a helpful technical setup). It shows the screen's goal: to find companies where strong basics are meeting a technically good moment.
Find more possible high-growth momentum breakout setups by viewing the preset screen here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The analysis is based on data provided and should not be the sole basis for an investment decision. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.