Newmont Corporation Stock Continues Decline Amid Falling Commodity Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy NEM?
Source: Fool
- Stock Price Decline: Newmont Corporation's shares have dropped 5.5% as of Thursday morning, marking the second consecutive day of declines, with a total decrease of 16.5% since reaching an all-time high of $132 on January 28, indicating a clear downward trend.
- Plummeting Gold and Silver Prices: Gold prices fell from $5,419.80 per ounce on January 28 to $4,660 by Monday, while silver prices dropped from $116.58 to $79.21, currently at $74.89, directly impacting Newmont's profitability.
- Market Reaction Analysis: While the market anticipates that falling gold and silver prices will affect Newmont's stock, analysts note that the stock trades at 18 times trailing earnings, with expected earnings growth of 38% this year, suggesting investment potential.
- Investment Potential Assessment: With a PEG ratio of 0.5, Newmont's stock appears undervalued at current prices, and analysts generally view it as a buying opportunity, despite short-term price pressures.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEM is 110.85 USD with a low forecast of 89.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.530
Low
89.00
Averages
110.85
High
125.00
Current: 108.530
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Plummeting Gold and Silver Prices: Gold prices fell from $5,419.80 per ounce on January 28 to $4,660 by Monday, while silver prices dropped from $116.58 to $79.21, currently at $74.89, directly impacting Newmont's profitability.
- Market Reaction Analysis: While the market anticipates that falling gold and silver prices will affect Newmont's stock, analysts note that the stock trades at 18 times trailing earnings, with expected earnings growth of 38% this year, suggesting investment potential.
- Investment Potential Assessment: With a PEG ratio of 0.5, Newmont's stock appears undervalued at current prices, and analysts generally view it as a buying opportunity, despite short-term price pressures.
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Contrarian Opportunities: Clark highlights that emotional market conditions often present unique investment opportunities, particularly in sectors that are currently undervalued or overlooked.
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- Strong Market Performance: Newmont Corporation (NYSE:NEM) saw its stock price surge by 168% in 2025, reflecting a significant increase in gold prices last year, showcasing its robust performance in the gold mining sector, although competitors like Agnico Eagle Mines also performed well.
- Investment Recommendations: While Cramer considers Newmont a solid investment choice, he expresses a preference for Agnico Eagle Mines, indicating that investors have multiple options in the gold market, which has shown overall strong performance.
- Industry Potential: Cramer highlights the excellent performance of the gold sector over the past year, suggesting that investments in this area carry relatively low risk, especially with the ongoing rise in gold prices, further solidifying Newmont's market position.
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See More
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Bitcoin's Winter Meltdown: Bitcoin continues to experience significant downturns, contributing to a challenging environment for cryptocurrency investors.
Dollar's Ongoing Malaise: The U.S. dollar is facing persistent weakness, impacting global trade and investment strategies.
Memification of Precious Metals: Precious metals are becoming increasingly popular in meme culture, indicating a shift in how these assets are perceived and traded.
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- Stock Price Decline: Newmont Corporation's shares have dropped 5.5% as of Thursday morning, marking the second consecutive day of declines, with a total decrease of 16.5% since reaching an all-time high of $132 on January 28, indicating a clear downward trend.
- Plummeting Gold and Silver Prices: Gold prices fell from $5,419.80 per ounce on January 28 to $4,660 by Monday, while silver prices dropped from $116.58 to $79.21, currently at $74.89, directly impacting Newmont's profitability.
- Market Reaction Analysis: While the market anticipates that falling gold and silver prices will affect Newmont's stock, analysts note that the stock trades at 18 times trailing earnings, with expected earnings growth of 38% this year, suggesting investment potential.
- Investment Potential Assessment: With a PEG ratio of 0.5, Newmont's stock appears undervalued at current prices, and analysts generally view it as a buying opportunity, despite short-term price pressures.
See More
