Denver, Colorado-based Newmont Corporation (NEM) is a leading global gold producer. Valued at $46.8 billion by market cap, NEM is a major player in the mining sector, and is known for its extensive portfolio of active mines and significant contributions to the gold industry.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Newmont fits this criterion perfectly. Newmont Corporation is a global leader in gold production, supported by a diverse portfolio of high-quality assets and extensive reserves. The company’s operational efficiency, focus on cost management, and commitment to sustainability enhance its reputation and ensure regulatory compliance. A strong financial position enables strategic investments and reliable shareholder returns, while diversification into copper production provides additional revenue stability and reduces reliance on gold market fluctuations.
However, the leading gold and copper miner pulled back 30% from its 52-week high of $58.72, achieved on Oct. 22. Shares of Newmont have plummeted 18.3% over the past three months, lagging behind the Ishares MSCI Global Gold Miners ETF’s (RING) marginal returns over the same time frame.
In the long term, NEM stock is down marginally on a YTD basis and has surged 3.5% over the past 52 weeks. In comparison, RING is up 23.8% in 2024 and has popped 25.8% over the past year.
Since late October, NEM stock has been trading below its 50-day and 200-day moving averages, confirming a bearish price trend.
On Nov. 25, Newmont shares fell 2%, leading declines among mining stocks, as gold prices tumbled over 3%.
However, NEM rose over 2% on Nov. 18, following its agreement to sell the Musselwhite operation to Orla Mining Ltd (ORLA) for $850 million.
In comparison, its rival, Barrick Gold Corporation (GOLD), is underperforming NEM. Shares of Barrick Gold have dropped 3.4% over the past 52 weeks and slumped 7.3% on a YTD basis.
Analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering the stock, and the mean price target of $55.92 suggests a premium of 36% to current price levels.
