Denver, Colorado-based Newmont Corporation (NEM) is a mining company. It produces and explores gold, copper, silver, zinc, and lead with a primary focus on gold. With a market cap of $54.2 billion, Newmont’s operations span the Americas, Caribbean, Africa, and the Asia Pacific.
Shares of Newmont have slightly underperformed the broader market over the past year. Over the past 52 weeks, NEM stock has gained 16.5% compared to the S&P 500 Index’s ($SPX) 17% returns. However, in 2024, NEM is up 15%, outpacing the SPX’s 9.9% gains on a YTD basis.
Zooming in further, NEM has underperformed the Ishares Global Gold Miners ETF’s (RING) 28.8% returns over the past 52 weeks and 19.8% gains on a YTD basis.
NEM stock has remained in the green in 2024 thanks to a remarkable performance driven by rising commodity prices. Despite dipping 4.2% in the subsequent trading session following its better-than-expected Q2 earnings release on July 24, the stock rebounded and stayed in the green for the next five sessions. The company reported impressive annual revenue and net income growth of 64.1% and 448%, respectively, which is primarily a result of rising commodity prices over the past months.
For the current fiscal year, ending in December, analysts expect Newmont to report an EPS growth of 71.4% year over year to $2.76. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the past four quarters while missing the forecasts on two other occasions. Its EPS for the last reported quarter surpassed the consensus estimates by 35.9%.
Among the 17 analysts covering the NEM stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly more bullish than two months before, with six analysts recommending a “Strong Buy.”
On Jul. 25, BMO Capital analyst Jackie Przybylowski maintained an “Outperform” rating on NEM and raised the target price to $57 from $56, citing impressive results that exceeded expectations. Strong production volumes and a solid management team make Newmont a stable choice. While it lacks the gold leverage of more aggressive peers, its conservative strategy and reliability earned the rating.
NEM’s mean price target of $51.33 represents a premium of 7.8% from current price levels. The street-high target of $59 indicates a potential upside of 23.9%.
On the date of publication, Aditya Sarawgi 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.
