Newmont is upgraded to Strong Buy due to robust fundamentals, portfolio rebalancing, and macro tailwinds supporting gold prices. NEM's latest results showed strong cash flow, with potential for massive annualized free cash flow at current gold prices, enabling expansion or higher shareholder returns. Portfolio adjustments and a new CEO position NEM for renewed growth, with further acquisitions and operational improvements likely to drive upside.
Newmont Corporation is upgraded with a new price target above $100, reflecting record gold prices and strong operational performance. NEM delivered a robust Q2, beating EPS and revenue estimates, with record free cash flow and a significant reduction in net debt. Valuation remains attractive despite technical overbought conditions, as NEM benefits from rising gold and by-product prices, plus aggressive share buybacks.
A favorable operating environment has led to Newmont's share surge, benefiting in a big way from elevated gold prices.
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Here is how Newmont Corporation (NEM) and Novagold (NG) have performed compared to their sector so far this year.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Newmont's record free cash flow, $6B buyback boost, and $2B shareholder returns highlight its aggressive capital allocation strategy.
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Newmont has surged 85% year-to-date, outperforming peers and benefiting from a robust gold market and operational improvements. The company reported record Q2 free cash flow of $1.7 billion and a 25% earnings beat, highlighting financial discipline and portfolio optimization. Ongoing divestitures and focus on Tier 1 assets have expanded margins and created a higher-quality, more resilient business model.
Newmont Corporation (NEM) closed at $74.4 in the latest trading session, marking a +1.96% move from the prior day.
Newmont remains a top gold mining pick, but I am downgrading from Strong Buy to Buy after a stellar run and rising macro equity risks. Despite solid 2025 outperformance versus the S&P 500 and still attractive valuations, looming recession risk and financial market liquidity concerns warrant near-term caution. I am trimming my Newmont position, rotating capital into bullion ETFs, as mining stocks could be sold off in a broad market retreat or recession.
Zacks.com users have recently been watching Newmont (NEM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.