Newmont Corporation’s Stock Journey: Analyzing Growth and Challenges
Newmont Corporation (NEM), based in Denver, Colorado, stands out as a major player in the global gold mining industry. With a notable market cap of $48.6 billion, the company emphasizes responsible mining and aims to create long-term value through sustainable practices and efficient asset management. Newmont operates a diverse portfolio of world-class gold and copper resources located across North America, South America, Australia, and Africa, highlighting its dedication to environmental care and operational excellence.
Stock Performance: Positive Trends Amidst Comparison Challenges
Over the last year, shares of Newmont have generally excelled compared to the wider market. In the past 52 weeks, NEM stock has increased by 25.3%, outperforming the S&P 500 Index’s ($SPX) 20.9% returns. For 2025 year-to-date, NEM’s rise stands at 15.9%, while the SPX has registered only 1.9% gains.
Comparative Analysis with Gold Mining ETFs
However, when measured against the Ishares MSCI Global Gold Miners ETF’s (RING) 48.5% returns in the last 52 weeks and 17.1% year-to-date growth, NEM has fallen short.
Recent Developments Affecting Stock Performance
On January 2, NEM stock experienced a gain of over 3% as gold prices rose by more than 1%, reaching a two-week high. Earlier, on November 18, shares rose by over 2% after Newmont announced the sale of its Musselwhite operation to Orla Mining Ltd (ORLA) for $850 million.
Earnings Report: A Mixed Bag
On October 23, Newmont released its Q3 earnings, resulting in a sharp drop of over 14% in shares. Revenue surged by 84.7% year-over-year to $4.61 billion, yet the adjusted EPS of $0.81 fell short of the expected $0.83. Furthermore, Newmont partnered with MKS PAMP to introduce traceable mine-to-market gold bars, reinforcing its commitment to transparent sourcing.
Forecasts and Analyst Ratings: A Cautious Optimism
For the fiscal year ending December 2024, analysts project Newmont’s EPS to grow by 90.1% year-over-year, reaching $3.06. The company’s earnings record reflects a mix of successes and shortcomings, meeting estimates in two of the last four quarters while missing in the other two.
Among 18 analysts evaluating NEM stock, the consensus rating is a “Moderate Buy.” This consists of nine “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
Analyst Insights: Adjustments and Predictions
This outlook reflects a more positive sentiment compared to three months prior, with a growth in the number of analysts recommending a “Strong Buy” to seven. On January 28, Raymond James analyst Brian MacArthur reduced Newmont’s price target to $58 from $59, while keeping an “Outperform” rating following the company’s sale of its Porcupine operation in Ontario to Discovery Silver.
NEM’s average price target of $53.75 suggests a potential upside of 24.7% from current levels, with the highest target reaching $72.32, indicating an ambitious growth potential of 67.7%.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data in this article are for informational purposes only. To learn more, please refer to the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
