Newmont Corporation (NEM) is a Top-Ranked Momentum Stock: Should You Buy?

Zacks Investment Research highlights Newmont Corporation (NEM) as a compelling momentum stock, assigning it a Zacks Rank #1 (Strong Buy) and a VGM Score of A. The positive assessment is driven by upward earnings estimate revisions, with the consensus for fiscal year 2025 rising to $4.18 per share following six analyst revisions in the last 60 days, and a recent 2% share price increase; NEM's 2024 gold production was 6.8 million ounces.

Analysis

Newmont Corporation (NEM) has been identified by Zacks Investment Research as a strong investment candidate, receiving a Zacks Rank #1 (Strong Buy), a VGM Score of A, and a Momentum Style Score of B. This positive outlook is substantially supported by upward earnings estimate revisions for fiscal year 2025, where six analysts have increased their forecasts in the past 60 days, causing the Zacks Consensus Estimate to rise by $1.05 to $4.18 per share. NEM has also demonstrated robust recent performance with its shares appreciating 2% over the last four weeks and has a track record of delivering an average earnings surprise of 32.4%. Operationally, Newmont's attributable gold production for 2024 was approximately 6.8 million ounces, and the company reported gold mineral reserves of 134.1 million ounces as of December 31, 2024. These metrics, combined with the strong analyst sentiment and positive momentum, highlight NEM's favorable position within the basic materials sector.

Key Decisions for Investors

• Investors should consider Newmont Corporation (NEM) for its strong buy signals, evidenced by its Zacks Rank #1, favorable VGM and Momentum scores, and significant upward earnings estimate revisions, particularly if seeking exposure to momentum stocks in the basic materials sector.
• It is advisable to monitor ongoing analyst earnings estimate revisions for NEM and prevailing gold market conditions, as these factors are key drivers for the stock's valuation and future performance.
• Given the positive indicators, including a 32.4% average earnings surprise and recent share price gains, investors might evaluate NEM as a candidate for addition to portfolios, aligning with the potential for outperformance suggested by its top Zacks Rank.