Newmont Corporation Shows Strong Gains Despite Market Competition

Denver, Colorado-based Newmont Corporation (NEM) stands as a leading force in the gold mining industry, focusing on the exploration, production, and sale of gold along with other minerals like copper, silver, lead, and zinc. With a market cap of $47.7 billion, Newmont operates mining assets across North America, South America, Australia, and Africa.

Fitting the designation of a “large-cap stock,” Newmont’s valuation solidly exceeds $10 billion. The company’s long history, encompassing over a century in gold mining, coupled with strategic acquisitions and extensive reserves, has helped establish its robust market presence.

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Currently, this gold mining giant trades at approximately 27.8% below its 52-week high of $58.72, which it reached on October 22, 2024. Over the last three months, NEM has shown resilience with a 1.5% gain, outpacing the broader S&P 500 Index ($SPX), which has dropped 7.7% in the same timeframe.

In a broader scope, NEM has achieved a 21.8% increase over the past 52 weeks, significantly outperforming the S&P 500’s 9.7% return. Year-to-date, the stock sits 15.3% higher, while the SPX has declined by 4.5% in that period.

To support its current bullish trend, NEM has remained above its 50-day moving average since mid-January. Despite this, it has yet to recover above its 200-day moving average, which it has been below since mid-November, experiencing some volatility along the way.

Newmont’s Q4 earnings results, released on February 20, contributed positively to the stock’s after-hours activity. The company reported an adjusted earnings of $1.40 per share, marking a stunning 204.3% increase from the prior year. Revenue rose by 42.8% year over year to $5.7 billion, driven by higher gold production, increased sales volumes, and a rise in realized gold prices. Additionally, Newmont’s all-in-sustaining costs (AISC) for gold fell by 1.5% compared to Q4 2023, reinforcing its performance.

Yet, Newmont’s gains have lagged when compared to rival Agnico Eagle Mines Limited (AEM), which has surged 80.9% in the past year and 28.7% on a year-to-date basis.

Despite this, analysts express moderate optimism for Newmont’s future. Currently, NEM holds a consensus rating of “Moderate Buy” from 18 analysts, with a mean price target of $53.30, reflecting a potential 22.6% upside from its current trading levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.