It's been a miserable week to own Newmont Corporation (NYSE: NEM) stock. Shares of the gold miner (which also mines copper, silver, zinc, and lead) are down 5.5% through 10:55 a.m. ET Thursday. This is only Newmont's second straight day of declines, but the stock's price trend is clearly of the "down" variety. Newmont's stock has fallen 16.5% since hitting its all-time high near $132 a share on Jan. 28. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stoc ...

Core Insights - Newmont Corporation (NEM) is enhancing shareholder value through significant dividends and share repurchases, distributing over $5.7 billion in the past two years [1][7] Financial Performance - Newmont generated a record free cash flow of $1.6 billion in Q3, with net cash from operating activities increasing by 40% year-over-year to $2.3 billion [2][7] - The company reduced its debt by approximately $2 billion in Q3, achieving a near-zero net debt position by the end of the quarter [3][7] Capital Allocation - Newmont has doubled its share repurchase authorization to $6 billion, executing $3.3 billion of this buyback as of October 23, 2025 [2] - The company is following a disciplined capital allocation policy, using its cash generation to return capital to shareholders, fund growth projects, and pay down debt [3] Market Position - Newmont's shares have increased by 79.2% over the past six months, outperforming the Zacks Mining – Gold industry, which rose by 64.8% [6] - The company is currently trading at a forward 12-month earnings multiple of 15.23, which is a 15% premium to the industry average of 13.24 [9] Earnings Outlook - The Zacks Consensus Estimate for NEM's earnings implies a year-over-year increase of 81.9% for 2025 and 21.1% for 2026, with EPS estimates trending higher over the past 60 days [10]

Core Viewpoint - The recent sell-off in gold and gold stocks presents a potential buying opportunity for investors, despite the volatility in gold prices and the impact of new Federal Reserve chair Kevin Warch's nomination on market sentiment [1][2]. Company Performance - Gold stocks, particularly Newmont and Barrick, experienced significant declines, with both companies' shares falling by double-digit percentages [2]. - Newmont's all-in sustaining costs (AISC) per ounce were $1,566 in Q3 2025, projected to rise to $1,760 in Q4, while Barrick's AISC was $1,538 in Q3, with Q4 guidance between $1,460 and $1,560 [3]. - As of February 3, 2026, spot gold prices were around $4,622 per ounce, allowing both companies to achieve gross profit margins exceeding 160%, a stark contrast to historical margins that rarely topped 50% [4]. Growth Drivers - The ongoing global demand for gold, driven by central banks increasing their gold reserves due to concerns about the U.S. dollar's stability, remains a key growth driver for Newmont and Barrick [8]. - Copper demand, particularly due to the expansion of AI infrastructure, is another significant growth driver. Data centers may require between 330,000 and 420,000 tonnes of copper annually by 2030 [9]. - Newmont produced 35,000 tonnes of copper in Q3, while Barrick produced 55,000 tonnes, benefiting from increased production at Lumwana mines in Zambia [10]. Market Sentiment - Some investors believe the sell-off in Newmont and Barrick was overdone, as both stocks are already showing signs of recovery [12]. - Despite potential volatility in gold prices, the fundamental demand for gold and copper is expected to persist, supporting continued profitability for both companies [13]. - Newmont's forward price-to-earnings ratio is 15.7, while Barrick's is approximately 12.5, indicating that neither stock is excessively priced despite recent market fluctuations [14].

Group 1 - Investors are taking a bullish stance on Newmont (NYSE:NEM), with significant options trades indicating potential insider knowledge of upcoming events [1] - The sentiment among big-money traders is mixed, with 48% bullish and 40% bearish positions observed in the options market [2] - The price target for Newmont is projected between $47.5 and $150.0 based on the analysis of volume and open interest in options contracts [3] Group 2 - Recent options activity shows a total of 50 uncommon trades for Newmont, with 14 puts amounting to $1,829,853 and 36 calls totaling $2,991,630 [2] - Current trading volume for Newmont is 5,931,900, with the stock price at $119.12, reflecting a 2.44% increase [7] - An industry analyst from Scotiabank maintains a Sector Outperform rating for Newmont, with a target price of $152.0 [6]

Core Viewpoint - Precious metal prices have rebounded after a three-day decline, leading to a widespread rally in gold and silver mining stocks [1] Group 1: Gold Mining Companies - Newmont's stock increased by 4.0% [1] - Barrick Mining's stock rose by 4.3% [1] - Agnico Eagle Mines saw a 3.8% increase in stock price [1] - Franco-Nevada's stock went up by 2.1% [1] - Kinross Gold experienced a 4.4% rise [1] - New Gold's stock surged by 5.2% [1] Group 2: Silver Mining Companies - Coeur Mining's stock increased by 6.0% [1] - Endeavour Silver's stock rose by 5.7% [1] - Pan American Silver saw a 5.7% increase [1] - Silvercorp Metals' stock went up by 5.0% [1] Group 3: Precious Metal Prices - Spot gold prices rose by 6.2% at one point [1] - Spot silver prices increased by 12% at one point [1]

Group 1 - The precious metals sector experienced a strong rally, with Southern Copper Corporation (SCCO.US) rising over 7% [2] - Freeport-McMoRan Copper & Gold (FCX.US) and First Majestic Silver (AG.US) both increased by more than 5% [2] - Pan American Silver (PAAS.US) saw an increase of over 4%, while Newmont Corporation (NEM.US) rose by more than 3% [2] Group 2 - Gold and silver prices rebounded significantly, with spot gold rising over 5% to surpass $4,900 [2] - Spot silver surged more than 12%, reaching $88.76 [2]

Core Viewpoint - The precious metals sector experienced a strong rally, with significant gains in various companies, driven by a rebound in gold and silver prices [1] Group 1: Market Performance - Southern Copper Corporation (SCCO.US) rose over 7% - Freeport-McMoRan Copper & Gold (FCX.US) and First Majestic Silver (AG.US) increased by more than 5% - Pan American Silver (PAAS.US) gained over 4% - Newmont Corporation (NEM.US) saw an increase of over 3% [1] Group 2: Price Movements - Spot gold surged over 5%, surpassing $4,900 - Spot silver jumped over 12%, reaching $88.76 [1] Group 3: Analyst Insights - UBS Global Research analyst Joanie Teves released a report indicating that while gold faces short-term price pressures, the long-term outlook for the precious metals market remains positive - Teves is optimistic about gold's long-term prospects, citing global financial system uncertainties and economic concerns as factors that will continue to drive demand for gold - The advantages of gold as a safe-haven asset will become more pronounced amid changes in Federal Reserve policy and escalating international political risks, suggesting significant upside potential for gold prices in the long term [1]

Core Viewpoint - The precious metals sector experienced a strong rally, with significant gains in various companies, driven by a rebound in gold and silver prices, indicating a positive outlook for the long-term precious metals market despite short-term risks [1] Group 1: Market Performance - Southern Copper Corporation (SCCO.US) rose over 7% - Freeport-McMoRan Copper & Gold (FCX.US) and First Majestic Silver (AG.US) increased by more than 5% - Pan American Silver (PAAS.US) gained over 4% - Newmont Corporation (NEM.US) saw an increase of over 3% [1] Group 2: Price Movements - Spot gold surged over 5%, surpassing $4900 - Spot silver jumped over 12%, reaching $88.76 [1] Group 3: Analyst Insights - UBS Global Research analyst Joanie Teves released a report indicating that while gold faces short-term price pressure, the long-term outlook remains positive - Teves believes that uncertainty in the global financial system and concerns about future economic trends will continue to drive demand for gold - The advantages of gold as a safe-haven asset will become more pronounced amid changes in Federal Reserve policy and increasing international political risks, suggesting significant upside potential for gold prices in the long term [1]

Core Viewpoint - Mining stocks Newmont Corporation and Freeport-McMoRan Inc experienced price movements influenced by external factors, particularly the nomination of Kevin Warsh for Fed chair, which affected gold and silver prices and the U.S. dollar. Group 1: Newmont Corporation (NEM) - NEM shares increased by 1.7% to $114.26 after a significant drop of 11.5% on Friday, marking its worst day since October 2024, following a record high of $134.88 on Thursday [2] - Despite the recent volatility, NEM shares have a 170% year-over-year gain and remain above their ascending 40-day moving average [2] Group 2: Freeport-McMoRan Inc (FCX) - FCX shares were down 0.6% to $60.57, with support from the 20-day moving average mitigating the impact of Friday's pullback from an all-time high of $69.44 [3] - Over the past 12 months, FCX stock has achieved a 69% gain [3] - Both NEM and FCX have shown tendencies to exceed option traders' volatility expectations, with Schaeffer's Volatility Scorecards rating them at 83 and 82 out of 100, respectively [3]

Group 1: Market Reaction - The prices of gold and silver experienced significant declines, with gold dropping over 12% to a low of $4682 per ounce, marking the largest single-day drop in 40 years, and closing down 9.25% at $4880 per ounce [2] - Silver saw an unprecedented drop of over 36%, reaching a low of $74.28 per ounce, and closing down 26.42% at $85.259 per ounce [2] - The U.S. stock market indices collectively fell, with the Dow Jones down 0.36%, S&P 500 down 0.43%, and Nasdaq down 0.94%, reflecting increased market concerns [3] Group 2: Influencing Factors - The sell-off in gold and silver was triggered by a rebound in the U.S. dollar, following reports of President Trump's nomination of Kevin Warsh as the new Federal Reserve Chairman, which was later confirmed [2][4] - Standard Chartered's global head of commodity research noted that the market was already due for a correction, and the announcement of the Fed Chair nominee, along with broader macroeconomic factors, acted as catalysts for profit-taking [2] - The U.S. dollar index saw a significant increase, marking its largest single-day rise since July of the previous year, which negatively impacted investor confidence in gold and silver [2] Group 3: Sector Performance - The gold sector faced substantial losses, with major companies like Newmont down 11.52%, Barrick Gold down 12.09%, and AngloGold down 13.28% [3] - The technology sector also experienced declines, with major tech stocks like Meta and TSMC dropping nearly 3%, while Amazon fell by 1% [3] - Chinese concept stocks saw a downturn, with the Nasdaq Golden Dragon China Index closing down 2.36%, and individual stocks like Bilibili and Li Auto dropping over 3% [3]