Bull of the Day: Newmont (NEM)

Newmont Mining Company Overview

Colorado-based Newmont Corporation (NEM) is one of the world’s largest gold mining companies, with a diverse portfolio of active mines in Nevada, Peru, Australia, and Ghana (to name a few). Although Newmont’s business is primarily focused on gold production, it also mines other precious metals, including, silver, copper, lead, and zinc. With 134 million ounces of gold at the end of last year, Newmont has the world’s highest gold reserves (by ~30 million ounces).

Newmont Spurs Growth Through Acquisition

Despite its dominance in the gold industry and unparalleled size, Newmont’s earnings and sales are growing rapidly through strategic, sizable acquisitions. In 2019, Newmont acquired Goldcorp in a $10 billion stock-for-stock transaction. Two years ago, Newmont also purchased Newcrest Mining Limited, creating an industry-leading asset portfolio. With gold prices more than 50% lower at the time of the acquisitions, the timing couldn’t have been more optimal. As a result, NEM has achieved outstanding triple-digit EPS growth and double-digit revenue growth for six consecutive quarters.

NEM Defies Wall Street Expectations

Wall Street is a game of expectations, and over the past four quarters, Newmont has had one of the most impressive fundamental track records. NEM has surpassed Zacks Consensus Estimates for four consecutive quarters, with the smallest beat a robust 32%, and an average surprise of 41.56%!

Meanwhile, several Wall Street analysts tracked by Zacks Investment Research have raised 2025 and 2026 earnings estimates over the past two months.

Newmont Catalyst: Gold Prices are Likely to Continue to Soar

After a multi-month consolidation, year-to-date, gold prices are up a blistering 50% to ~$4,000 per ounce. Heading into 2026, several of the bullish catalysts that have driven gold prices remain valid. Below are some of the key gold catalysts likely to drive gold prices even higher, including:

·       Central Bank Buying: Central banks are acquiring gold at a dizzying rate – a trend unlikely to stop on a dime. In particular, BRIC nations like India and China continue to buy large amounts of gold as they seek to reduce their reliance on the US dollar.

·       Inflation Concerns: Following the post-pandemic inflation spike, many investors are buying gold as a hedge against inflation. Furthermore, many investors are concerned about another inflation spike due to US President Trump’s tariff policy. Finally, interest rate cuts from the US and global central banks may drive gold prices further.

·       Gold Access: Access to gold investing has never been easier. Unlike in the past, investors can easily invest in gold through the SPDR Gold Shares ETF (GLD) rather than buying physical gold. Meanwhile, Tether, the world’s largest stablecoin operator, has unveiled “Tether Gold,” a stablecoin whose tokens are backed by physical gold held in Swiss vaults. Tether Gold has already achieved a market cap of more than $2 billion since its 2020 debut. Finally, Costco (COST), one of the most popular wholesale retailers, sells more than $200 billion in gold bars a month.

Unlike many of its competitors, Newmont does not hedge its gold holdings, making it a more attractive investment as gold prices continue to soar.

NEM Technical Analysis

After an explosive and relentless move from $60 to $98, NEM shares are retreating to the intermediate 10-week moving average. Typically, the first pullback to the 10-week moving average after an explosive move is defended by bulls.  

Bottom Line

With unparalleled gold reserves and a proven record of growth, Newmont is a leading gold miner uniquely positioned to capitalize on the soaring price of gold.

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This article originally published on Zacks Investment Research (zacks.com).

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