On October 23, Newmont Corp. (NEM) shares experienced a 2% rise just hours before the company is set to release its third-quarter financial report. This uptick comes after a recent downturn where NEM stock fell 8% over the last five trading sessions, paralleling a decline in gold prices.
Gold Price Movements
Currently, the price of gold has also increased by 2%. This rise follows a week marked by significant corrections after gold reached all-time highs on over 30 occasions this year, accumulating gains of more than 60% overall. Analysts anticipated a pullback after such a substantial surge in gold prices.
Earnings Projections for Newmont
Despite this volatility, Newmont is projected to deliver strong earnings, benefiting from high gold prices. Analysts expect the company to report an earnings per share (EPS) of $1.27 for the quarter ending September 30. This represents a notable increase of 57% compared to the $0.81 per share recorded during the same period last year.
Strong Performance History
- Newmont has consistently exceeded earnings expectations.
- In the first quarter, earnings surpassed forecasts by 49%.
- In the second quarter, the company topped estimates by 38%.
NEM Stock Analysis
Despite recent fluctuations, NEM stock has surged by 140% this year, largely due to unprecedented gold prices. The consensus rating among 14 Wall Street analysts for Newmont is a “Strong Buy,” backed by 11 Buy and 3 Hold recommendations issued in the past three months.
Future Expectations
The average price target for NEM stands at $91.62, suggesting a 3.68% potential upside from current trading levels. Investors are keenly observing upcoming earnings reports as they assess the stock’s performance moving forward.
With robust earnings expectations and a strong analyst consensus, Newmont appears well-positioned for continued success in the market.
