Newmont Corporation (NEM) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Newmont Corporation (NEM)? Shares have been on the move with the stock up 10.8% over the past month. The stock hit a new 52-week high of $100.41 in the previous session. Newmont has gained 167.1% since the start of the year compared to the 29.8% move for the Zacks Basic Materials sector and the 147.8% return for the Zacks Mining - Gold industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 23, 2025, Newmont reported EPS of $1.71 versus consensus estimate of $1.29 while it beat the consensus revenue estimate by 11.06%.

For the current fiscal year, Newmont is expected to post earnings of $6.06 per share on $21.12 in revenues. This represents a 74.14% change in EPS on a 13.05% change in revenues. For the next fiscal year, the company is expected to earn $7.07 per share on $22.74 in revenues. This represents a year-over-year change of 16.61% and 7.67%, respectively.

Valuation Metrics

While Newmont has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Newmont has a Value Score of C. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 16.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.6X. On a trailing cash flow basis, the stock currently trades at 17.1X versus its peer group's average of 21X. Additionally, the stock has a PEG ratio of 0.69. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Newmont currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Newmont fits the bill. Thus, it seems as though Newmont shares could have potential in the weeks and months to come.

How Does NEM Stack Up to the Competition?

Shares of NEM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Agnico Eagle Mines Limited (AEM). AEM has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Agnico Eagle Mines Limited beat our consensus estimate by 22.73%, and for the current fiscal year, AEM is expected to post earnings of $9.43 per share on revenue of $11.14 billion.

Shares of Agnico Eagle Mines Limited have gained 0.9% over the past month, and currently trade at a forward P/E of 21.9X and a P/CF of 23.55X.

The Mining - Gold industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NEM and AEM, even beyond their own solid fundamental situation.

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

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