Why Newmont Corporation Stock Popped Today

After 4 consecutive days of gains, Newmont Corporation (NYSE: NEM) banal took a breather yesterday, falling 5% -- past perked close backmost up!

In greeting trading, 10:15 a.m. ET Friday, shares of the golden miner (which besides mines copper, silver, zinc, and lead) are up 5% -- not quite back wherever they were connected Wednesday, but close.

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And why? No immense enigma determination -- the terms of golden is rising. After hitting an all-time precocious of $5,419.80 per ounce connected Jan. 28, golden prices tumbled to astir $4,500 successful aboriginal February, according to information from TradingEconomics.com. Gold moved backmost supra the $5,000 threshold past week, slipped beneath it yesterday (which is wherefore Newmont declined), and is backmost supra $5,000 contiguous -- $5,001 per ounce, to beryllium precise.

The communicative connected metallic is similar. Silver prices peaked connected Jan. 28 astatine $116.58 per ounce. Silver prices fell to $66, past bounced backmost supra $80, lone to autumn astir 10% yesterday. At past report, metallic is up astir 0.5% today, and heading toward $78.

So simply put, golden and metallic are up contiguous -- and Newmont stock, which mines golden and silver, is going up with them.

Can Newmont support rising? That depends connected however overmuch it's been capable to gain from the rising prices of golden and silver. We'll find that retired Thursday, Feb. 19, erstwhile Newmont reports Q4 earnings.

Analysts foretell Newmont volition gain $2.02 per stock for the quarter, bringing its full-year nett to $6.42. On Newmont's $124 banal price, that works retired to astir a 19.3 price-to-earnings ratio connected a banal that -- analysts accidental -- volition turn net 32% annually implicit the adjacent 5 years.

Sounds similar a bargain to me.

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