Newmont has risen along with other gold stocks amid fears that inflation may spike as President Donald Trump's tariffs roll out.
But while several gold stocks are extended, Newmont stock is building the right side of a base with a buy point of 58.72. But investors should watch for a possible earlier handle entry at 55.86. Shares are yet to carve out the handle after they rallied for five days and cleared their 50-day and 200-day moving averages.
Newmont shares are in an early-stage base that can lead to higher gains after a strong breakout.
Rising profit estimates also support a bullish outlook for the stock. According to IBD MarketSurge data, analysts polled by FactSet see profits rising 13% to $3.92 per share in 2025 and 8% in 2026 to $4.23 per share.
First Among Equals
The gold and silver mining group currently ranks first among Investor's Business Daily's 197 industry groups. According to IBD Stock Checkup, Newmont also holds first place in the 24-member group.
Newmont touts it has the largest gold and copper reserve base in the industry. The company has gold, silver and copper mining operations across several continents.
Newmont stock has a best-possible Composite Rating of 99. But its Relative Strength Rating is not far behind. The measure of the stock's price performance compared with other stocks in the IBD database sits at 95.
The relative strength line which compares the stock to the benchmark S&P 500 index has also been rising.
Gold Stock: Accelerating Earnings Growth
Newmont has delivered accelerating earnings growth over the past five quarters and holds an Earnings Per Share Rating of 88. Further, earnings grew 204% to $1.40 per share on sales of $5.7 billion in the fourth quarter.
First-quarter results are due on April 23. Analysts estimate 16% growth in sales of $4.7 billion and earnings of 91 cents per share or a 66% increase from the prior year.
Newmont also has an impressive Accumulation/Distribution Rating of A-. That shows that funds have been net buyers of the stock over the past 13 weeks.
Mutual funds own 47% of outstanding shares. The Up/Down Volume Ratio of 1.5 also shows that the stock is seeing strong demand among buyers.
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