Newmont Corporation Stock Continues to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy NEM?
Source: NASDAQ.COM
- Declining Gold and Silver Prices: Gold prices have fallen from an all-time high of $5,419.80 per ounce on January 28 to below $4,660 earlier this week, currently at $4,816.10, while silver dropped from $116.58 to $74.89, directly impacting Newmont's stock price which is down 5.5% this week.
- Poor Stock Performance: Newmont's stock has declined 16.5% since its peak of $132, indicating market sensitivity to fluctuations in gold and silver prices, with analysts projecting a 38% earnings growth next year, yet the stock remains in a downward trend, affecting investor confidence.
- Valuation Metrics: Newmont's current price-to-earnings ratio stands at 18 times trailing earnings, expected to drop to 16 times next year, with a PEG ratio of 0.5, suggesting the stock may be undervalued in light of anticipated earnings growth, attracting value investors' interest.
- Cautious Investment Advice: Although Newmont stock appears to present a buying opportunity, it was not included in the Motley Fool Stock Advisor's list of top investment stocks, advising investors to be cautious and consider other potential high-return stocks.
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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.
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