NEM Rallies 82% on Gold Price Upside and Strategic Strength
Newmont Corporation NEM has witnessed a strong share price surge over the past six months, driven by a combination of supportive macro conditions, improving fundamentals and positive market sentiment. Shares of NEM have popped 81.6% in the past six months compared with the industry’s 73.9% rise. Image Source: Zacks Investment ResearchLet’s look into the factors driving the price surge: Rising Gold Prices and Strategic Focus Boost NewmontGold prices have surged 73% this year and are currently at around $4,463 an ounce. Persistently elevated geopolitical tensions, inflation concerns and uncertainty around global interest-rate trajectories have reinforced gold’s role as a safe-haven asset. The favorable pricing environment has translated into strong earnings and solid free cash flow, supporting an attractive dividend yield of about 3–4% and continued shareholder returns. Operational progress at growth assets such as the Ahafo North project in Ghana, which is expected to boost production significantly over its life, has further strengthened medium-term output visibility and long-term cash flow potential. As the world’s largest gold miner, Newmont is perceived as a defensive, lower-risk proxy to gold, benefiting from its geographic diversification, long reserve life and scale advantages, which enhance earnings stability across commodity cycles. The company’s portfolio rationalization strategy, including the divestment of non-core and higher-cost assets, has sharpened its focus on Tier-1, long-life, low-cost operations, improving the overall quality of its asset base. This strategic shift, combined with disciplined capital allocation and an emphasis on shareholder returns, has strengthened confidence in management’s execution and long-term value creation. NEM Zacks Rank & Key PicksNEM currently carries a Zacks Rank of #3 (Hold).Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Ltd. AEM, Iamgold Corp. IAG and Kinross Gold Corporation KGC. AEM, IAG and KGC carry a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank here.The Zacks Consensus Estimate for AEM’s current fiscal-year earnings is pegged at $7.87 per share, indicating an 86% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, with an average surprise of 12%. The Zacks Consensus Estimate for IAG’s current fiscal-year earnings stands at 89 cents per share, implying a 62% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in two of the trailing four quarters while missing two, with the average surprise being 3%. The Zacks Consensus Estimate for KGC’s current fiscal-year earnings is pegged at $1.68 per share, indicating a 147% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in three of the trailing four quarters while missing one, with the average surprise being 17.4%. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Iamgold Corporation (IAG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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