Though the market has seen sharp volatility over the past month, negativity hasn’t been entirely widespread, with shares of UnitedHealth (UNH) , Newmont (NEM) , and Sprouts Farmers Market (SFM) all seeing positive gains.
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But what’s been driving the outperformance? Let’s take a closer look at each.
Newmont Benefits from Gold Surge
Colorado-based Newmont is one of the world’s largest producers of gold, owning several active mines in Nevada, Peru, Australia, and Ghana. The surge in gold prices has been the driving factor behind the stock’s strong YTD performance, up nearly 50%.
Notably, the average gold price per oz reached $2,643 throughout its latest period, melting higher from the $2,004 mark in the same period last year. Free cash flow of $1.6 billion throughout the period was the company’s highest read ever.
Below is a chart illustrating NEM’s free cash flow on a quarterly basis. The amplified cash-generating abilities are a huge positive, allowing the company to shell out dividend payments or pay down any debt.
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The favorable gold environment has led analysts to up their EPS expectations across the board, with NEM now sporting a very bullish near-term outlook.
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UNH Maintains Steady Growth
UnitedHealth offers a full spectrum of health benefits, with its Optum segment using data and technology to improve care delivery and health outcomes. The stock is currently a Zacks Rank #2 (Buy), with its EPS outlook inching higher across nearly all timeframes over the past couple of months.
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It’s critical to note that the company is scheduled to report quarterly results this week, with our current consensus expectations alluding to 5% YoY EPS growth on 11% higher sales. The company has been a stellar earnings performer overall, exceeding the Zacks Consensus EPS estimate in each of its last 20 quarterly releases.
Its results are expected on Thursday, April 17th, before the market’s open. Investors should also note that the company is largely shielded from any tariff worries thanks to its domestic operations within the U.S.
SFM Shares Melt Higher
SFM shares have been strong thanks to robust quarterly results, with the company exceeding both consensus EPS and sales expectations in each of its last ten quarters. Up nearly 160% over the last year, the stock has crushed the S&P 500.
Continued sales growth has pleased investors, with SFM reporting double-digit percentage YoY sales growth rates in each of its last three periods. Sales of $2.0 billion throughout its latest period grew an impressive 17% from the year-ago mark, reflective of a strong demand picture overall.
Below is a chart illustrating the company’s sales on a quarterly basis.
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The stock also sports the highly-coveted Zacks Rank #1 (Strong Buy), with its EPS outlook shifting notably bullish across the board. The company’s next set of results come on April 30th.
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Bottom Line
While the market continues to digest tariff headlines and other economic developments, all three stocks above – UnitedHealth (UNH) , Newmont (NEM) , and Sprouts Farmers Market (SFM) – have all been climbing higher, with each also sporting bullish near-term EPS outlooks.
— Derek Lewis
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