Newmont (NEM): Reassessing Valuation After Strong Q3 Earnings, Record Gold Prices and Analyst Upgrades

Newmont (NEM) is back in the spotlight after stronger than expected Q3 earnings, as record high gold prices, share buybacks and a lean balance sheet pushed the stock up over 117% this year.

See our latest analysis for Newmont.

Those upbeat Q3 numbers and record gold prices have helped fuel a powerful trend, with Newmont’s share price return up 20.83% over 90 days and its 1 year total shareholder return at 122.20%, signaling strong, still building momentum.

If Newmont’s run has you thinking bigger about commodities and beyond, it could be a good time to explore fast growing stocks with high insider ownership for other potentially mispriced stories with conviction behind them.

With Newmont now trading near record highs, a richer dividend and analysts lifting targets, investors face a key question: Is the market still underestimating its cash flow power or already pricing in years of future growth?

Most Popular Narrative: 12.5% Undervalued

With Newmont last closing at $90.48 against a narrative fair value of $103.42, the spread hints at meaningful upside if the thesis holds.

The realization of synergies and increased production scale following the Newcrest Mining acquisition, together with ongoing asset optimization and the ramp-up of expansion projects (such as Ahafo North and Tanami), should support long-term revenue growth and cash flow stability.

Read the complete narrative.

Curious how modest top line growth, shifting margins and a re rated earnings multiple can still point to double digit upside? See how the narrative connects those dots.

Result: Fair Value of $103.42 (UNDERVALUED)

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

However, persistent safety issues or rising sustaining capital spend could squeeze margins, disrupt operations and challenge assumptions around Newmont’s long term cash generation.

Find out about the key risks to this Newmont narrative.

Build Your Own Newmont Narrative

If this view does not quite fit your thinking, or you would rather dig into the numbers yourself, you can build a custom narrative in minutes, Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Newmont.

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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.

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