Latest news for Escalera Resources (OTC:ESCSQ) Stock

Escalera Resources Co is an independent energy company. The company is engaged in the exploration, development, production and sale of natural gas and crude oil mainly in the United States. Escalera's production primarily consists of natural gas from properties located in Wyoming, of which are coalbed methane reserves and production in the Atlantic Rim area of the eastern Washakie Basin, and tight gas reserves and production on the Pinedale Anticline in the Green River Basin.

ESCALERA RESOURCES CO PFD by Escalera Resources Co.

Escalera Resources Co

Morgan Stanley analyst Ravi Shanker maintains JB Hunt Transport Servs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>) with a Equal-Weight and lowers the price target from $162 to $160.

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JBHT

Morgan Stanley Maintains Equal-Weight on JB Hunt Transport Servs, Lowers Price Target to $160

The U.S. Energy Department&#39;s weekly inventory release showed that natural gas supplies increased more than expected. The bearish inventory numbers, together with signs of production gains, affected natural gas futures, which settled with a heavy loss week over week.
Meanwhile, forecasts for higher weather-related demand and a resurgence of LNG exports represent a few bright spots for the fuel.
Considering that the space remains highly susceptible to unpredictable weather patterns that impact prices and market stability, at this time we advise investors to snap up Buy-rated stocks like Coterra Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ctra#NYSE">CTRA</a>) and hold onto others like Cheniere Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lng#NYSE">LNG</a>).
<h3>EIA Reports a Build Slightly Larger Than Market Expectations</h3>
Stockpiles held in underground storage in the lower 48 states rose 32 billion cubic feet (Bcf) for the week ended Jun 28, above the analyst guidance of a 30 Bcf addition. The latest increase puts total natural gas stocks at 3,134 Bcf, 275 Bcf (9.6%) above the 2023 level and 496 Bcf (18.8%) higher than the five-year average.
<h3>Natural Gas Prices Finish Significantly Lower</h3>
Natural gas prices trended southward last week, following the higher-than-expected inventory build. Futures for August delivery ended Friday at $2.32 on the New York Mercantile Exchange, plunging some 10.8% from the previous week&#39;s closing. Despite this dip, the commodity has been resurgent over the past few months &mdash; gaining 47.5% in the second quarter &mdash; and wiped out almost all its deficit since the start of this year.
Investors should know that natural gas realization has been under pressure from strong production, elevated stockpiles, and tepid weather-related demand. It&#39;s worth mentioning that the current inventory levels are well above the year-ago figure and the five-year average. The bearish sentiment surrounding the commodity even prompted shale producers Chesapeake Energy (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chk#NASDAQ">CHK</a>) and EQT Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eqt#NYSE">EQT</a>) to hit the brakes on new drilling. Chesapeake announced a reduction in its drilling rigs to lower volume, with the Appalachian Basin-focused EQT following on.
However, both these companies have recently started bringing earlier-deferred production back online following the recovery in prices. It appears that the increased output has put renewed pressure on natural gas prices. This is despite the predictions of hotter-than-normal weather over the coming weeks.
Meanwhile, a stable demand catalyst in the form of continued strong LNG feed gas deliveries is supporting natural gas. LNG shipments for export from the United States have been elevated of late due to environmental reasons and Europe&#39;s endeavor to move away from its dependence on Russian natural gas supplies due to the war in Ukraine.
At the same time, the increase in gas flows due to the full restart of the Freeport LNG export plant in Texas has translated into more of the commodity being loaded onto ships. A heatwave blanketing Southeast Asia has also led to a jump in power demand for air conditioning, increasing exports of the super-chilled fuel.
<h3>Final Thoughts</h3>
The upshot of all these factors &mdash; the natural gas market &mdash; despite improving, remains an oversupplied one. It endured a torrid 2023, briefly breaking below the $2 threshold for the first time since 2020. The situation was not much different in early 2024, with the fuel reaching a multi-year low near $1.48 in late March and struggling to sustain a rally over the psychological mark of $2.
While natural gas staged quite the turnaround in a matter of weeks, given the favorable temperature and lower production outlook, it has dropped again as producers plan to bring back those volumes.
Based on these factors, the space is currently quite unpredictable and spooked by sudden changes in weather and production patterns. As such, investors are advised to continue exercising caution, and preferably buy/hold on to fundamentally strong stocks like Coterra Energy and Cheniere Energy.
Coterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. This Zacks Rank #2 (Buy) company churned out an average of 2,262.7 million cubic feet daily from these assets in 2023.
Coterra beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 9.8%. Valued at around $19.5 billion, CTRA has risen 5.9% in a year.
Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy enjoys a distinct competitive advantage.
Cheniere Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. This Zacks Rank #3 (Hold) natural gas exporter has a trailing four-quarter earnings surprise of roughly 58.9%, on average. LNG shares have moved up 15.2% in a year.
<a href="https://www.zacks.com/stock/news/2297613/natural-gas-markets-endure-a-rocky-week-what-happened?cid=CS-BENZ-FT-analyst_blog|industry_focus-2297613">To read this article on Zacks.com click here.</a>

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CTRA

Natural Gas Markets Endure a Rocky Week: What Happened?

HOOKIPA Pharma Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOK#NASDAQ">HOOK</a>) shares are trading lower by 10.9% to $0.50 during Monday&#8217;s session after the company announced a <a href="https://www.benzinga.com/pressreleases/24/07/g39663039/hookipa-pharma-announces-effective-date-of-1-for-10-reverse-stock-split">1-for-10 reverse stock split</a>, effective at 5:00 p.m. ET on July 9. The stock will start trading on a split-adjusted basis on July 10. 
This move aims to meet Nasdaq&#8217;s minimum bid price requirement for continued listing. Post-split, every 10 shares will be consolidated into one share, maintaining the same par value per share. Fractional shares will not be issued; instead, stockholders will receive a cash payment for any fractional shares.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/07/39666482/french-luxury-stocks-fall-as-tax-concerns-rise-after-left-wing-election-upset-a-left-government-" target="_blank" rel="noreferrer noopener">French Luxury Stocks Fall As Tax Concerns Rise After Left-Wing Election Upset</a>
<h2 class="wp-block-heading">How To Buy HOOK Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in HOOKIPA Pharma&#8217;s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, HOOK has a 52-week high of $1.13 and a 52-week low of $0.41.

HOOK

Why HOOKIPA Pharma (HOOK) Stock Is Volatile Today

TD Cowen analyst Janus Henderson maintains Janus Henderson Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JHG#NYSE">JHG</a>) with a Buy and raises the price target from $37 to $38.

Janus Henderson Group plc Ordinary Shares

TD Cowen Maintains Buy on Janus Henderson Group, Raises Price Target to $38

Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) saw a 3.13% dip by 11 AM ET on Monday as investors digested the merger announcement <a href="https://www.benzinga.com/quote/PARA/news">with Skydance Media</a>. 
Here's what the technical indicators say about the stock's future.
<h3 class="wp-block-heading">Bullish Indicators</h3>
Despite the recent news, the technical outlook for Paramount stock remains intriguing. The stock is currently trading above its 5, 20, and 50-day exponential moving averages, signaling strong bullish momentum. 
<figure class="wp-block-image size-full"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070824&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="632" height="451" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113158/Screenshot-2024-07-08-at-9.01.45-PM.png" alt="" class="wp-image-424438" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113158/Screenshot-2024-07-08-at-9.01.45-PM.png 632w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113158/Screenshot-2024-07-08-at-9.01.45-PM-300x214.png 300w" sizes="(max-width: 632px) 100vw, 632px" /></a></figure>
<a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070824&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>
Read Also: <a href="https://www.benzinga.com/general/entertainment/24/07/39658163/paramount-board-endorses-merger-with-skydance-media-as-david-ellison-nears-acquisition-of-m">Paramount Global And Skydance Media Ink $28B Merger, Forming New Entity</a>
Here's a closer look:
<ul>
<li>Simple Moving Averages: PARA's share price of $11.46 is comfortably above its 8-day SMA ($10.78), 20-day SMA ($10.65), and 50-day SMA ($11.68), all reinforcing a bullish trend.</li>
</ul>
<figure class="wp-block-image size-full"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070824&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="632" height="451" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113241/Screenshot-2024-07-08-at-9.01.01-PM.png" alt="" class="wp-image-424440" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113241/Screenshot-2024-07-08-at-9.01.01-PM.png 632w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/08113241/Screenshot-2024-07-08-at-9.01.01-PM-300x214.png 300w" sizes="(max-width: 632px) 100vw, 632px" /></a></figure>
<a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent070824&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>
<ul>
<li>Bollinger Bands: The 25-day Bollinger Bands, ranging from $9.13 to $12.78, suggest buying opportunities, indicating potential price support and volatility levels.</li>
</ul>
<h3 class="wp-block-heading">Cautionary Signals</h3>
However, not all indicators are flashing green. Several metrics suggest the need for cautious optimism:
<ul>
<li>200-Day SMA: The 200-day simple moving average at $12.53 currently creates a bearish signal, indicating potential resistance at higher levels.</li>
<li>MACD and RSI: The Moving Average Convergence Divergence (MACD) indicator at -0.13 suggests bearish sentiment, while the Relative Strength Index (RSI) at 54.92 and heading northwards, indicates that the stock could approach overbought territory at 70.</li>
</ul>
<h3 class="wp-block-heading">What's Next?</h3>
As Paramount navigates through the merger process, the technical setup shows mixed signals:
<ul>
<li>Support and Resistance Levels: Key support is seen around the 50-day SMA at $11.68, with resistance at the 200-day SMA at $12.53.</li>
<li>Potential Catalysts: The merger could bring new dynamics, but for now, the technical picture suggests that bulls have the upper hand. Traders should watch for breakout movements above the 200-day SMA or potential pullbacks to the support levels.</li>
</ul>
While the merger with Skydance Media introduces new variables, the technical indicators for Paramount Global suggest a bullish bias in the short term, with key levels to watch for potential entry points or exits.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/07/39668270/paramount-analysts-size-up-merger-skydance-aims-for-earnings-not-a-breakup-redstone-says-co">Paramount Analysts Size Up Merger: Skydance Aims For Earnings, &#8216;Not A Breakup,&#8217; Redstone Says Content Is King</a></li>
</ul>
Image: Shutterstock

Entertainment

Technicals

PARA

Paramount Technical Signals Point To Potential Upside On Heels Of Skydance Deal

Craig-Hallum analyst Aaron Spychalla maintains Babcock &amp; Wilcox (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BW#NYSE">BW</a>) with a Hold and raises the price target from $1.5 to $2.

Craig-Hallum Maintains Hold on Babcock & Wilcox, Raises Price Target to $2

TD Cowen analyst Bill Katz maintains KKR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>) with a Buy and lowers the price target from $157 to $145.

TD Cowen Maintains Buy on KKR, Lowers Price Target to $145

Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) shares are trading lower Monday after Chinese car sales fell <a href="https://www.benzinga.com/markets/equities/24/07/39655069/tesla-stock-at-6-month-high-orders-trickle-in-for-canoo-nio-cfo-departs-and-more-biggest-ev-stor">in the month of June. </a>
The Details:
Retail sales of cars fell for the third month in a row, down 6.7% from the prior year to 1.77 million units in June, the China Passenger Car Association said Monday. Retail sales of new-energy cars, which include electric vehicles and plug-in hybrids, rose 28.6% to 856,000 units in June from a year earlier, due to continued high demand for NEVs. 
Adding to headwinds facing Li Auto, the European Union last week introduced provisional tariffs of up to 37.6% on China-made EVs to protect against a <a href="https://www.benzinga.com/news/24/07/39662998/chinese-ev-makers-pivot-to-africa-amid-eu-and-us-tariff-hurdles">potential flood</a> of cheaper, subsidized EVs.&nbsp;
Li Auto shares rose 13% last week after the company said it delivered 47,774 vehicles in June, just below its December record of 50,353 EV deliveries.&nbsp;&nbsp;
Read Next:<a href="https://www.benzinga.com/news/24/07/39648950/whats-going-on-with-arm-holdings-stock"> What&#8217;s Going On With Arm Holdings Stock?</a>
According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Li Auto shares are trading below the stock&#8217;s 50-day moving average of $22.05 and near its 52-week low of $17.75.
<h2 class="wp-block-heading">LI Stock Prediction 2024: </h2>
Li Auto&#8217;s revenue growth in fiscal year 2023 was 159.1%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. PPI recently came in at -0.2%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.1%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Li Auto stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Li Auto's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Li Auto operates in the Consumer Discretionary sector. The stock has experienced average annual growth of -14.19% compared to the -35.47% average of its peer companies. This is below the broader sector movement of Li Auto.
LI Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Li Auto shares are down 2.05% at $20.04 at the time of publication Monday.
Read Also:
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39650853/whats-going-on-with-palantir-stock">What&#8217;s Going On With Palantir Stock?</a></li>
</ul>
Image: Shutterstock

Movers

What's Going On With Li Auto Stock?

Shell plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shel#NYSE">SHEL</a>) expects a $2 billion impairment in the second quarter of 2024 after pausing its Rotterdam biofuels facility and divesting its Singapore refinery. Rotterdam&#39;s construction halt leads to a $600 million to $1 billion non-cash charge, while Singapore sees $600 million to $800 million in charges.
Now, let&#39;s dig into some other segment-wise selected items from the London-based supermajor&#39;s release on Friday.
<h3>Upstream</h3>
According to the latest update, Shell&#39;s upstream production fell 5.4% on a sequential basis in the second quarter of 2024 at the midpoint of the guidance. The supermajor is estimating its output in the range of 1,720-1,820 (thousand barrels of oil equivalent per day) MBOE/d compared to 1,872 MBOE/d in the first quarter of 2024. Tax charges are expected to hurt earnings in the range of $1.8-$2.6 billion.
Meanwhile, Shell expects the share of profit of joint ventures and associates to be around $200 million. The segment&#39;s results are also likely to include well write-offs to the tune of $200 million. Finally, operating expense for the segment is projected at around $2.4 billion.
<h3>Integrated Gas</h3>
Shell&#39;s LNG liquefaction volumes are expected in the range of 6.8-7.2 million tons, translating into a decrease of around 7.7% sequentialy. Shell&#39;s integrated gas production is expected in the range of 940,000-9800,000 barrels of oil equivalent per day (BOE/d) or 960,000 BOE/d at the midpoint. It was 992,000 BOE/d in the January-March period.
Per the company, second-quarter trading and optimization results in its integrated gas unit will be &quot;in line&quot; with the second quarter of 2023 but won&#39;t measure up to the previous quarter due to seasonality. Segment operating cost is expected between $1 billion and $1.2 billion.
<h3>Marketing</h3>
The midpoint of management&#39;s marketing sales volume guidance is 2.900 million barrels per day, higher than the 2.763 million barrels achieved in the first quarter of 2024. Overall, segment profits are expected to be in line with the quarter-ago levels, while operating expenses would be between $2.5 billion and $2.9 billion.
<h3>Chemicals &amp; Products</h3>
The company expects a sequentially flat trajectory in its Trading &amp; Optimisation results for the second quarter of 2024. As projected by Shell, the refining margin may have weakened in the same period, with the metric deteriorating 34.6% sequentially. But with chemical margins moving up 3%, realized chemicals sub-segment numbers are expected to be better than in the first quarter. Shell also forecast refinery utilization of 91-95%, operating expense of $1.9-$2.3 billion and chemicals manufacturing plant utilization of 78-82%.
<h3>Renewables and Energy Solutions</h3>
The adjusted bottom line of this segment is expected to hover between a loss of $500 million and a profit of $100 million.
<h3>Q2 Estimates</h3>
The company is slated to release second-quarter 2024 results on Aug 1. The current Zacks Consensus Estimate for Shell&#39;s to-be-reported quarter is a profit of $1.96 per share on revenues of $88.7 billion.
<h3>Zacks Rank &amp; Stock Picks</h3>
Shell carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider operators like SM Energy Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sm#NYSE">SM</a>), Sunoco LP (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sun#NYSE">SUN</a>) and Tullow Oil (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tuwoy#OTC">TUWOY</a>). Sunoco currently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Tullow carry a Zacks Rank #2 (Buy) each.
SM Energy Company: SM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. SM Energy has a trailing four-quarter earnings surprise of 13.8% on average.
SM is valued at around $5 billion. SM Energy has seen its shares increase 47% in a year.
Sunoco LP: The Zacks Consensus Estimate for 2024 earnings of Sunoco indicates 99.7% growth.
SUN is valued at around $5.6 billion. Sunoco has seen its stock rise 36.3% in a year.
Tullow Oil: TUWOY is valued at some $573.7 million. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has increased 20%.
Tullow Oil enjoys a Value, Growth and Momentum Score of A, B and B, respectively, each helping it round out with a VGM Score of A. TUWOY shares have gained 24.4% in a year.
<a href="https://www.zacks.com/stock/news/2297611/shell-shel-provides-q2-guidance-warns-of-up-to-2b-hit?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2297611">To read this article on Zacks.com click here.</a>

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TUWOY

Shell Provides Q2 Guidance: Warns of Up to $2B Hit

Wells Fargo analyst Ken Gawrelski maintains Ibotta (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBTA#NYSE">IBTA</a>) with a Overweight and lowers the price target from $131 to $105.

IBTA

Wells Fargo Maintains Overweight on Ibotta, Lowers Price Target to $105

U.S. Federal Reserve Chair Jerome Powell is expected <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39271304/economists-feel-federal-reserve-will-lower-interest-rates-just-once-this-year-surve">to face pressure</a> on interest-rate cuts and bank regulations from members of Congress on Tuesday and Wednesday as he provides his semiannual testimony before both chambers.
Sen. Elizabeth Warren (D-Mass.) is anticipated to squeeze Powell on lowering the Fed&#8217;s key interest rate during the Senate Banking Committee on Tuesday, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-07-08/powell-to-face-fed-critics-in-congress-on-high-rates-bank-rules?sref=TBDibEcD">reported</a>. She sent a letter to Powell in June urging him to lower it to follow the European Union Central Bank&#8217;s move to ease monetary policy.
The Fed has kept its key interest rate in the range of 5.25% to 5.50% since late July 2023 as it waits for the inflation rate, which stands at 3.4%, to fall to 2%.
The Fed in June voted in favor of reducing the number of cuts this year from three to one with plans to lower the rate four times next year. Powell has not said when the Fed might start cutting rates. 
Also Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/07/39644869/new-york-federal-reserve-president-highlights-significant-progress-in-taming-infl">New York Federal Reserve President Highlights &#8216;Significant Progress&#8217; In Taming Inflation, But 2% Target &#8216;Still A Way To Go&#8217;</a>
Rep. Jim Himes (D-Conn.), who will hear from Powell on Wednesday before the House Financial Services Committee, said no member of Congress should pressure the Fed to raise or lower interest rates, according to Bloomberg.
Rep. Brendan Boyle (D-Penn.) said concerns over the economy slowing are greater than worries over getting the inflation rate to 2%, despite the strength of the economy.
Boyle also pointed out that expressed mortgage rates are nearly double pre-COVID-19-pandemic levels and therefore making homes unaffordable to buy.
Powell is also expected to get grilled on U.S. plans to force Wall Street lenders to put aside a lot more capital, Bloomberg reported. He said in March &#8220;broad and material changes&#8221; may be in order for a July 2023 proposal that would force the eight largest U.S. banks to hold about 19% more in capital to protect against financial shocks.
Republicans, including House Financial Services Committee Chairman Patrick McHenry (R-N.C.), spoke vehemently against the original plan in September, urging its withdrawal and arguing that it had "fatal problems" that could endanger the financial system.
Fed officials recently showed other U.S. regulators a three-page document of possible changes to the planned overhaul that would lower the capital requirement on lenders.
Warren has accused Powell of giving bank executives too much sway over the Fed proposal.
Read Now:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39660318/us-spending-like-drunken-sailor-mmt-godfather-slams-government-amid-rising-debt-and">US Spending Like &#8216;Drunken Sailor,&#8217; MMT Godfather Slams Government Amid Rising Debt And Large Deficits</a></li>
</ul>

Photo: Shutterstock

Government

Economics

Federal Reserve

Powell Anticipates To Be Pressed About Rate Cuts, Bank Rules Before Congress

Concerns about the stability of the crypto market rose sharply today as <a href="https://www.benzinga.com/top-stories/24/07/39649054/german-mp-argues-for-retaining-bitcoin-holdings-rather-than-liquidate">the German government</a> continued its aggressive sale of confiscated Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) on Monday.
What Happened: <a href="https://x.com/ArkhamIntel/status/1810315954431176898">According</a> to blockchain analysis firm Arkham, German authorities have moved an additional 8,100 BTC (worth approximately $463.2 million) to exchanges and market makers since their previous update earlier today.
This latest move comes on the heels of an earlier transfer reported by Arkham, where the German government sent 2,738.7 BTC (worth $155.3 million at the time) to likely exchanges and market makers, including Kraken, Cumberland and other addresses associated with institutional or over-the-counter (OTC) services.
The most recent transfer, occurring within minutes of the report, saw $200 million worth of Bitcoin sent to Flow Traders, a prominent market maker. 
Following these transactions, the German government still holds 28,988 BTC, valued at approximately $1.66 billion.
This accelerated sell-off coincides with a downturn in Bitcoin&#8217;s price. 
At the time of reporting, Bitcoin was trading around $56,050, down 1.5% over the past 24 hours, having earlier touched a low of $55,064.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/events/digital-assets/ "><img loading="lazy" decoding="async" width="300" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/29155259/905735A6-57D3-4874-9AA1-75D037842DB3-2.gif" alt="Benzinga Future of Digital Assets conference" class="wp-image-270548" /></a></figure>
Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39651051/these-altcoins-show-bullish-signals-while-bitcoin-faces-critical-juncture">These Altcoins Show Bullish Signals While Bitcoin Faces Critical Juncture</a>
Why It Matters: The timing of these large-scale transfers has led some market analysts to speculate about a potential correlation between the German government&#8217;s actions and the recent price volatility.
The German government&#8217;s decision to liquidate its Bitcoin holdings through exchanges and market makers, rather than through public auctions as seen in some past cases of government cryptocurrency sales, marks a shift in approach. 
This method allows for a more gradual distribution of assets into the market, potentially mitigating sudden price impacts.
Joana Cotar, a member of the German Bundestag, has been vocal about the government&#8217;s approach to its Bitcoin holdings. 
Cotar criticized the decision to liquidate Bitcoin, arguing that it would be more strategic to hold the digital currency as a reserve. 
&#8220;Bitcoin offers a unique opportunity to diversify the state&#8217;s assets and protect against inflation and currency devaluation,&#8221; she <a href="https://x.com/JoanaCotar/status/1808888782738911614">stated</a> in a recent letter to government officials.
Cotar also highlighted the potential benefits of fostering a Bitcoin-friendly regulatory environment, which could promote innovation and attract top talent to Germany. 
She emphasized the need for comprehensive strategies, such as retaining Bitcoin in the state treasury and issuing Bitcoin bonds, to enhance economic sovereignty and technological progress.
What&#8217;s Next: The upcoming Benzinga <a href="https://www.benzinga.com/events/digital-assets/agenda/">Future of Digital Assets</a> event on Nov. 19 bring together industry leaders, investors, and analysts to discuss the latest trends and forecasts in the cryptocurrency space.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/39652442/multicoin-capital-announces-1m-match-for-pro-crypto-senate-candidates-in-solana-donations">Multicoin Capital Announces $1M Match For Pro-Crypto Senate Candidates In Solana Donations</a></li>
</ul>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

Bitcoin Plunges To $56K As German Government Continues Liquidating Its Holdings

Major stock indices in the United States ended on the green last Friday, following a key labor market data release, which came almost in line with market expectations. Notably, the latest data implied a 206,000 increase in nonfarm payrolls in June in the United States, which might have reignited Fed rate cut hopes among investors as reflected in an upward price movement in the share market.
Against this backdrop, stock market players might be in the mood for some good investments. However, since the share market has lately been on edge, we recommend stocks like Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), PulteGroup (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>), Atmos Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), Steelcase (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/scs#NYSE">SCS</a>) and Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>), which have low leverage. Choosing them can shield investors from incurring huge losses in times of crisis.
Now, before selecting low-leverage stocks, let&#39;s explore what leverage is and how choosing a low-leverage stock helps investors.
In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.
However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing.
The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.
The equity market can be volatile at times, and, as an investor, if you don&#39;t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.
To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios.
<h3>Analyzing Debt/Equity</h3>
Debt-to-Equity Ratio = Total Liabilities/Shareholders&#39; Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company.
With the second-quarter earnings season ahead of us, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.
<h3>The Winning Strategy</h3>
Considering the factors above, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.
<h3>Here are the other parameters:</h3>
Debt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.
Current Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.
Average 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock&#39;s price appreciation.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Estimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.
Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.
Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 16 stocks that made it through the screen.
Vital Farms: The company offers a range of produced pasture-raised foods, which include shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. On Jun 26, 2024, Vital Farms revealed plans to expand its resilient supply chain with a second world-class egg washing and packing facility located in Seymour, Indiana. The new 72-acre facility will enable Vital Farms to continue growing its pasture-raised egg business and is expected to help generate more than $350 million in additional revenues.
VITL delivered an average four-quarter earnings surprise of 102.10%. It currently sports a Zacks Rank #1. The Zacks Consensus Estimate for VITL&#39;s 2024 sales suggests a solid 22.3% improvement from 2023&#39;s reported figure.
PulteGroup: It engages in homebuilding and financial services businesses, primarily in the United States. On Jul 3, 2024, PulteGroup announced that it has started building its Ryehill and Del Webb Sugar Land at Ryehill, new masterfully planned communities perfectly located in Sugar Land near Hwy 59 and Grand Parkway. Once completed, these communities will feature approximately 2,500 homes offering a variety of flexible floorplans.
PHM currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.6%. The Zacks Consensus Estimate for PHM&#39;s 2024 sales suggests a 7.9% improvement from the year-ago reported quarter.
Atmos Energy: It is engaged in regulated natural gas distribution and storage business. On May 8, Atmos Energy announced second-quarter fiscal 2024 results. Its earnings per share came in at $4.93, higher than the year-ago quarter&#39;s level of $4.40.
ATO currently carries a Zacks Rank #2. The company boasts a long-term earnings growth rate of 7%. The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 sales implies an increase of 9.4% from fiscal 2023 sales.
Steelcase: It is a designer and manufacturer of products used to create high-performance work environments. Its product portfolio includes furniture systems, seating, storage, desks, casegoods, interior architectural products, technology products and related products and services. On Jun 11, 2024, Steelcase, along with Logitech, launched OcularTM View. This extended reality experience immerses people in virtual conversations that make them feel like they are sitting across from each other even though they&#39;re miles apart.
SCS currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2024 sales implies an improvement of 3.3% from the 2023 reported sales figure. SCS has a long-term earnings growth rate of 10%.
Skechers: It designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several uniquely branded names. On May 14, 2024, the company announced its partnership with John Deere, the iconic American brand and signature leaping deer logo, to expand the work, outdoor and fashion industries worldwide with a co-branded professional and lifestyle offering. The footwear collection is designed for agricultural professionals, construction workers, outdoor enthusiasts and trendsetters &mdash; all seeking top-of-their-field brands that offer the latest innovations.
SKX currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.2%. The Zacks Consensus Estimate for SKX&#39;s 2024 sales suggests a 10.6% improvement from the 2023 reported figure.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and backtest them first before taking the investment plunge.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2297566/5-low-leverage-stocks-to-buy-following-key-labor-data-release?cid=CS-BENZ-FT-analyst_blog|rw-2297566">To read this article on Zacks.com click here.</a>

VITL

5 Low-Leverage Stocks to Buy Following Key Labor Data Release

TD Cowen analyst Bill Kirk maintains LPL Finl Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPLA#NASDAQ">LPLA</a>) with a Hold and raises the price target from $271 to $279.

LPLA

TD Cowen Maintains Hold on LPL Finl Hldgs, Raises Price Target to $279

Wells Fargo analyst Ken Gawrelski maintains Roblox (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>) with a Overweight and raises the price target from $41 to $43.

RBLX

Wells Fargo Maintains Overweight on Roblox, Raises Price Target to $43

The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares are slightly higher on Monday after the company entered into a plea deal with the <a href="https://www.benzinga.com/news/24/07/39658887/boeing-strikes-plea-deal-with-doj-for-defrauding-us-regulator-over-737-max-safety-victims-lawyer-cal">Department of Justice.</a>
What Happened: Boeing agreed to a plea deal with the Department of Justice where Boeing would plead guilty and avoid going to trial for conspiracy to defraud the United States, according to <a href="https://apnews.com/article/boeing-guilty-plea-crashes-245a38dc6d3082f4ddff1f6f74f274f2">the Associated Press</a>.
Under the plea deal, Boeing will pay a $243.6 million fine and invest at least $455 million into its safety and compliance programs. Also, an independent monitor would be appointed to monitor Boeing&#8217;s quality procedures. This deal is still pending approval by a federal judge.
The case stems from two 737 Max crashes that killed 346 people. Originally Boeing and the Department of Justice entered into a settlement agreement that allowed Boeing to avoid prosecution for the two crashes for over three years. However, the justice department said that Boeing violated the agreement. Prosecutors then decided to file criminal charges against the company.
See Also: <a href="https://www.benzinga.com/insights/analyst-ratings/24/07/39668968/analyst-ratings-for-southwest-airlines">Analyst Ratings For Southwest Airlines</a>
BA Price Action: At the time of publication, Boeing shares are trading up 0.96% at $186.61, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro.</a>
Image: Tada Images On Shutterstock

Why Boeing Stock Is Moving Higher Monday

TD Cowen analyst Bill Katz maintains Raymond James Finl (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RJF#NYSE">RJF</a>) with a Hold and raises the price target from $130 to $133.

TD Cowen Maintains Hold on Raymond James Finl, Raises Price Target to $133

XPeng (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) stock is trading lower on Monday after China&#8217;s car sales <a href="https://www.benzinga.com/wiim/24/07/39667772/shares-of-chinese-auto-stocks-are-trading-lower-after-chinas-car-sales-fell-in-june">dropped in June.</a>
The Details: China&#8217;s car sales decreased by 6.9% in June compared to last year, according to Reuters.
Data from the China Passenger Car Association shows that June is the third consecutive month where Chinese car sales have declined. In April car sales fell 5.8% and in May car sales fell 2.2%.
Of Chinese vehicle sales, electric cars made up a record 48.1% over the prior month. In fact, electric vehicle sales were up 9.9% in June. 
In Xpeng&#8217;s Vehicle Delivery Results report for June, the company reported a 24% increase year-over-year in smart electric vehicle deliveries. In addition, for the first half of 2024, Xpeng&#8217;s smart electric vehicle deliveries were up 26% compared to last year.
<h2 class="wp-block-heading">How To Buy Xpeng Stock </h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in XPeng's case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Related Link: <a href="https://www.benzinga.com/news/24/07/39667208/chinas-ai-leader-iflytek-projects-65m-loss-amid-heavy-investments-and-rising-us-pressure">China&#8217;s AI Leader iFlytek Projects $65M Loss Amid Heavy Investments And Rising US Pressure</a>
XPEV Price Action: Xpeng stock is trading 5.28% lower at $7.50 at the time of publication per data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.
Image: Koshiro K on Shutterstock

XPEV

Why XPeng Shares Are Moving Lower Monday

Shares of Virpax Pharmaceuticals Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRPX#NASDAQ">VRPX</a>) are trading higher on Monday on a strong session volume of 22.8 million, as per <a href="https://www.benzinga.com/pro/feature/newsfeed">data from Benzinga Pro.</a>
The company is focused on developing non-addictive products for pain management, post-traumatic stress disorder, central nervous system (CNS) disorders, and anti-viral barrier indications.
The company closed a $2.5 million secured loan financing from an institutional investor, which enabled the final <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39663668/virpax-pharmaceuticals-secures-2-5-million-loan-financing-and-an-agreement-with-an-institutional-i" rel="noreferrer noopener">payment of its litigation settlement</a>.
As part of this financing, the company&#8217;s board of directors has been reorganized and reduced to seven members from eight.
The institutional investor has selected and appointed four new board members, and five board members have resigned.
&#8220;This loan by the institutional investor, combined with an agreement to negotiate additional funding, will allow us to continue fulfilling our mission to develop non-addictive pain drugs as well as other CNS product candidates with high unmet medical need,&#8221; stated Gerald Bruce, CEO of Virpax Pharmaceuticals.
Virpax is initially seeking FDA approval for two prescription drug candidates that employ two different patented drug delivery platforms.&nbsp;
<ul>
<li>Probudur is a single-injection liposomal bupivacaine formulation being developed to manage post-operative pain.</li>
<li>Envelta&nbsp;is an intranasal molecular envelope enkephalin formulation being developed to manage severe pain, including post-cancer pain.</li>
</ul>
As announced earlier, Virpax Pharmaceuticals priced the public offering of 1.67 million, Series A-1 common warrants to purchase up to 1.7 million shares, and Series A-2 common warrants to purchase up to 1.7 million at a <a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38841111/virpax-announces-pricing-of-2-25-million-public-offering" rel="noreferrer noopener">combined price of $1.35/share</a>.
The Series A-1 warrants will have an exercise price of $1.35 per share, will be exercisable immediately, and expire five years from the initial issuance date. The Series A-2 warrants will have an exercise price of $1.35 per share, will be exercisable immediately, and expire eighteen months from the initial issuance date.
Price Action: VRPX shares are up 95.2% at $1.13 at last check Monday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/07/39667417/vaccine-developer-hillevax-stock-nosedives-on-monday-heres-why" target="_blank" rel="noreferrer noopener">Vaccine Developer HilleVax Stock Nosedives On Monday &#8211; Here&#8217;s Why</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Biotech

Health Care

Legal

General

VRPX

What's Going With Penny Stock Virpax Pharmaceuticals On Monday?

Newmont Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) shares have racked up a 12.2% gain in the past three months, outperforming the Zacks Mining &ndash; Miscellaneous industry&#39;s decline of 1.8% and the broader Zacks Basic Materials sector&#39;s decrease of 6.5%. It has also topped the S&amp;P 500&#39;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&nbsp;since Apr 23, 2024. After a series of sporadic movements, the stock broke the 50-day SMA on Jul 3, 2024.&nbsp;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.
<h3>Newmont Trades Above 50-Day SMA</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/fc/70550.jpg?v=703374512" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
Is the time right to buy NEM&#39;s shares for potential upside? Let&#39;s take a look at the stock&#39;s fundamentals.
<h3>Key Projects, Newcrest Buyout to Catalyze Growth</h3>
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 million in total annual pre-tax benefits expected by the end of 2025. NEM also remains on track to meet its 2024 gold production target of around 6.9 million ounces with solid performances of its managed Tier 1 assets and contributions of the sites acquired from the Newcrest buyout.
<h3>Solid Financial Health, and Attractive Dividend Yield &amp; Payout</h3>
Newmont has a strong liquidity position and generates substantial cash flows, which allows it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the first quarter of 2024, Newmont had liquidity of $6.7 billion, including cash and cash equivalents of around $2.3 billion. Its operating cash flow jumped more than 60% year over year to $776 million in the quarter.
Moreover, as a leading gold producer, Newmont stands to benefit significantly from the record-setting upswing in gold prices, which should boost its profitability and drive cash flow generation. Gold prices are hitting record highs this year, and the yellow metal has been among the best-performing assets. Prices skyrocketed to an all-time high of $2,449.89 in May, and are currently hovering near the $2,400 per ounce mark. The rally has been driven by strong demand from central banks, a dovish Fed interest rate outlook, global uncertainties and geopolitical tensions.
NEM offers a healthy dividend yield of 2.2% (above the S&amp;P 500&prime;s average dividend yield of roughly 2%) at the current stock price. Its payout ratio is 57% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of 15.5%. Backed by strong cash flows and sound financial health, the company&#39;s dividend is perceived to be safe and reliable.
<h3>Higher Production Costs Strain Margins</h3>
Newmont, like most miners, is buffeted by higher production costs, which are likely to weigh on its margins over the near term. Its gold costs applicable to sales rose roughly 13% year over year in 2023. Newmont also saw a 19% surge in all-in-sustaining costs &mdash; the most important cost metric of miners. Both cost metrics increased year over year in the first quarter of 2024. The impacts of increased direct operating costs are leading to cost inflation. Higher materials, labor and contract services costs, despite easing somewhat lately, remain as concerns.
<h3>Rising Earnings Estimates &amp; Strong Growth Prospects</h3>
The Zacks Consensus Estimate for NEM&#39;s 2024 earnings has increased around 4.6% over the past 30 days. The consensus estimate for second-quarter 2024 has also been revised 4% upward over the same time frame.
The Zacks Consensus Estimate for 2024 earnings is currently pegged at $2.48, reflecting an expected year-over-year growth of 54%. Moreover, earnings are expected to register a roughly 57.6% growth in the second quarter. NEM has a long-term EPS growth rate of 47.9% versus 19.6% for its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ac/70551.jpg?v=699747469" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Valuation: Bit Stretched But Reasonable</h3>
Newmont is currently trading at a forward 12-month earnings multiple of 15.9X, a roughly 20.6% premium to the peer group average of 13.18X. The valuation looks reasonable considering the company&#39;s healthy earnings trajectory.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b7/70553.jpg?v=248516956" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Newmont Underperforms S&amp;P 500 &amp; Peers</h3>
Despite the rally in gold prices, Newmont&#39;s shares have managed to register a modest gain of 4.5% over the past year, topping the industry&#39;s 3.8% increase but underperforming the S&amp;P 500&#39;s rise of 27.7%. Moreover, it has underperformed its peers, Barrick Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>), Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) and Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>), which have gained 5.5%, 41.1% and 76.1%, respectively, over the same period.
<h3>One-Year Price Performance</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1e/70552.jpg?v=22854236" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Wrapping Up</h3>
With a robust portfolio of growth projects, solid financial health and bullish technicals, Newmont presents a compelling investment case. A healthy growth trajectory, rising earnings estimates and an attractive dividend yield are the other positives. Rallying gold prices should also boost NEM&#39;s profitability and drive cash flow generation. However, despite the upbeat growth prospects, its high production costs warrant caution. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
<a href="https://www.zacks.com/stock/news/2297608/newmont-nem-gains-12-in-3-months-should-you-buy-the-stock?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2297608">To read this article on Zacks.com click here.</a>