Newmont (NEM): Exploring Whether the Gold Miner’s Shares Still Offer Upside Potential

Newmont (NEM) shares have been searching for direction lately, with recent performance reflecting broad shifts in the materials sector. Investors are assessing whether the company’s fundamentals offer upside as gold prices fluctuate.

See our latest analysis for Newmont.

Newmont’s share price may have lost some ground over the past month, but the momentum since the beginning of the year is hard to ignore. A 111.02% year-to-date share price return points to renewed optimism in gold stocks. Over the past year, total shareholder return stands at 82.49%, signaling that Newmont’s rebound is being backed by more than just short-term sentiment.

If Newmont’s rally has you scanning for what else is possible, this could be the perfect moment to discover fast growing stocks with high insider ownership.

With shares still trading below analyst targets and solid earnings growth last year, the key question is whether Newmont’s current price leaves real upside for investors or if the market already reflects future gains.

Most Popular Narrative: 19.8% Undervalued

With Newmont’s fair value estimated at $100.97, well above the last close of $80.97, the most popular narrative points to plenty of room left for further upside. The market is taking notice of robust gold trends and improved sector momentum reflected in upgraded forecasts.

Bullish analysts point to upward revisions in gold price forecasts, which support higher valuations for Newmont and its peers across several major financial institutions. Enhanced production guidance and a firm capital management stance are cited as key contributors to Newmont’s anticipated free cash flow growth and improved shareholder returns.

Read the complete narrative.

Want to know what’s fueling such confidence? There’s a bold revenue and earnings trajectory at the core of this narrative, plus future margin expectations that just might surprise you. See the surprising financial projections driving this valuation.

Result: Fair Value of $100.97 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing operational issues or a sharp downturn in gold prices could quickly challenge even the most optimistic outlook for Newmont’s continued momentum.

Find out about the key risks to this Newmont narrative.

Build Your Own Newmont Narrative

If you see things differently, or want to dive into the numbers yourself, you can put together your own narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Newmont.

Looking for more investment ideas?

Don’t wait to step up your investing game. The latest market winners might be just a few clicks away when you harness the power of our screener tools.

• Capture strong yields and stable returns when you target these 22 dividend stocks with yields > 3% offering consistent payouts above 3%.
• Pounce on tomorrow’s tech leaders by checking out these 26 AI penny stocks making waves in artificial intelligence innovation and disruption.
• Tap into overlooked market gems with these 840 undervalued stocks based on cash flows based on proven cash flow metrics, before others spot their potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com