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Newmont Gains 12% in 3 Months: Should You Buy the Stock?

Newmont Corporation's (NYSE: NEM) shares have racked up a 12.2% gain in the past three months, outperforming the Zacks Mining – Miscellaneous industry's decline of 1.8% and the broader Zacks Basic Materials sector's decrease of 6.5%. It has also topped the S&P 500's 7.6% rise over the same period. The bullishness appears to have been catalyzed by expectations of solid earnings in the second quarter on the back of a rally in gold prices. The stock is currently trading at a roughly 3% discount to its 52-week high of $45.92 reached on Jul 14, 2023. Technical indicators show that NEM has been unremittingly trading above the 200-day simple moving average since Apr 23, 2024. After a series of sporadic movements, the stock broke the 50-day SMA on Jul 3, 2024. Notably, following a golden crossover on May 13, 2024, the 50-day SMA continues to read higher than the 200-day moving average, manifesting a bullish trend, with the 200-day SMA acting as the support level. Newmont Trades Above 50-Day SMA Image Source: Zacks Investment Research Is the time right to buy NEM's shares for potential upside? Let's take a look at the stock's fundamentals. Key Projects, Newcrest Buyout to Catalyze Growth Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Block Caves in Australia. These projects should expand production capacity and extend mine life, thereby driving revenues and profits. Moreover, the acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for shareholders and generate significant synergies, with $500 ...