Core Viewpoint - Newmont Corporation (NEM) has experienced a 5.5% decline in share price over the past month, underperforming the S&P 500, raising questions about its upcoming earnings release and potential for recovery [1] Group 1: Earnings and Estimates - The consensus estimate for Newmont has shifted upward by 7.73% over the past month, indicating positive revisions in earnings expectations [2] - The most recent earnings report is crucial for understanding the catalysts affecting the stock's performance [1] Group 2: VGM Scores - Newmont holds a Growth Score of B, but has a low Momentum Score of F, while achieving a Value Score of B, placing it in the second quintile for value investment strategy [3] - The aggregate VGM Score for Newmont is B, which is significant for investors not focused on a single strategy [3] Group 3: Outlook - The upward trend in estimates suggests a promising outlook for Newmont, supported by a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4]

Industry Overview - Gold has gained approximately 26% year to date, currently trading near $3,030 per ounce, driven by geopolitical risks and a weaker U.S. dollar [1] - The Zacks Mining - Gold industry has increased by 39.1% year to date, outperforming the Zacks Basic Materials sector's 6.4% and the S&P 500's 0.7% [2] - Robust gold demand is anticipated to continue, with central banks expected to maintain a buying streak of over 1,000 tons [8] Demand and Supply Dynamics - Gold demand reached 1,206 tons in Q1 2025, the highest quarterly total since 2016, with central banks acquiring around 244 tons [4] - Investment demand surged 170% year over year to 552 tons, marking the strongest quarter since Q1 2022, driven largely by China [5] - Global gold ETFs saw inflows of 226.5 tons, with April marking the fifth consecutive monthly increase [6] Company Highlights Newmont - Newmont solidified its position as the world's largest gold producer after integrating Newcrest assets and is focusing on Tier 1 assets [10] - The company has a strong liquidity position and is pursuing several growth projects, including Tanami Expansion 2 and Ahafo North [11] - The Zacks Consensus Estimate for Newmont's 2025 earnings indicates a year-over-year growth of 12.6% [12] Agnico Eagle Mines - Agnico Eagle maintains a strong liquidity position and is advancing several projects expected to enhance production and cash flows [13] - The Zacks Consensus Estimate for Agnico Eagle's 2025 earnings suggests a year-over-year growth of 42.2% [14] Barrick Mining - Barrick Mining is well-positioned to benefit from key growth projects, including Goldrush and Pueblo Viejo plant expansion [15] - The Zacks Consensus Estimate for Barrick Mining's 2025 earnings indicates a year-over-year growth of 34.7% [17] Kinross Gold - Kinross Gold has a strong production profile and is advancing key development projects, including Great Bear and Round Mountain Phase X [19] - The Zacks Consensus Estimate for Kinross Gold's 2025 earnings suggests a year-over-year growth of 52.2% [21] New Gold - New Gold consolidated its interest in the New Afton mine to 100%, projecting a 37% increase in gold production between 2024 and 2027 [22] - The Zacks Consensus Estimate for New Gold's 2025 earnings indicates a year-over-year growth of 91.25% [24]

Market Overview - Wall Street experienced a strong bull run in 2023 and 2024, but 2025 has shown mixed results due to concerns over persistent inflation and the Federal Reserve's uncertain stance on interest rates after a 1% cut in the benchmark lending rate last year [1] - Severe volatility has affected Wall Street since early April, primarily due to the implementation of reciprocal tariff policies by the Trump administration, with baseline tariffs at 10% but actual rates exceeding 70% for several major trading partners [2] - Retaliatory tariffs from other countries have raised fears of a global trade war, although some trade negotiations have been settled and others are ongoing [3] Company Highlights Philip Morris International Inc. (PM) - Philip Morris has shown strong pricing power and is expanding its smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [7] - The company anticipates robust growth in 2025, with a projected 2% increase in volume and smoke-free products expected to grow by 12-14% [8] - Expected revenue and earnings growth rates for the current year are 8.1% and 13.7%, respectively, with a stock price increase of 44.7% year to date [9] Sprouts Farmers Market Inc. (SFM) - Sprouts Farmers is focusing on product innovation, e-commerce, and private label offerings, which have contributed to better-than-expected fourth-quarter 2024 results [10] - The company expects net sales to rise between 10.5% and 12.5% in 2025, with comparable sales anticipated to increase by 4.5-6.5% [11] - Expected revenue and earnings growth rates for the current year are 13.7% and 35.5%, respectively, with a stock price surge of 32.2% year to date [12] Newmont Corp. (NEM) - Newmont is progressing with growth projects, including the Tanami expansion and the acquisition of Newcrest, which enhances its portfolio and synergies [13] - The Ahafo North project has received full funding approval, with commercial production expected to start in the second half of 2025, involving an investment of $950 million to $1,050 million [14] - Expected revenue and earnings growth rates for the current year are 2% and 12.6%, respectively, with a stock price increase of 40.5% year to date [15]

Group 1 - Newmont is positioned as one of the leading mining companies globally, particularly in gold production [1] - The company is expanding its strategic role in copper, which is increasingly recognized as a key metal [1]

Core Viewpoint - Newmont Corporation's stock has recently experienced a pullback due to declining gold prices, but the company maintains a long-term bullish trend supported by strong project execution and financial health [1][2][21]. Stock Performance - Newmont's stock fell below its 50-day simple moving average (SMA) at $50.10, indicating a bearish signal, while it remains above its 200-day SMA, suggesting a long-term uptrend [1][2]. - Over the past month, Newmont's shares have decreased by 9.3%, outperforming the Zacks Mining – Gold industry's decline of 11.3% but underperforming the S&P 500's increase of 15.3% [5]. Project Execution and Acquisitions - Newmont is actively investing in growth projects, including the Tanami Expansion 2 in Australia and the Ahafo North expansion in Ghana, which are expected to enhance production capacity and extend mine life [10]. - The acquisition of Newcrest Mining Limited has created a robust portfolio, achieving $500 million in annual run-rate synergies and positioning Newmont favorably in the gold and copper production landscape [11]. Financial Health - Newmont reported a strong liquidity position with $8.8 billion in liquidity, including $4.7 billion in cash and cash equivalents, and a significant operating cash flow increase of approximately 162% year over year [13]. - The company generated a record free cash flow of $1.2 billion in the first quarter and returned $1 billion to shareholders through dividends and share repurchases [13]. Gold Price Dynamics - Despite recent declines, gold prices have increased by roughly 22% this year, with Newmont's average realized gold prices rising around 41% year over year to $2,944 per ounce in the first quarter [14][15]. - Factors such as central bank purchases and geopolitical tensions are expected to support gold prices, which remain above $3,200 per ounce [15]. Dividend and Valuation - Newmont offers a dividend yield of 2% with a payout ratio of 24%, indicating a sustainable dividend backed by strong cash flows [16]. - The stock is trading at a forward price/earnings ratio of 12.07X, approximately 11% lower than the industry average of 13.57X, making it an attractive investment option [18]. Earnings Estimates - Newmont's earnings estimates for 2025 have been revised upward, with a Zacks Consensus Estimate suggesting a year-over-year growth of 12.6% [17][18]. Investment Outlook - Despite recent stock performance challenges, Newmont presents a compelling investment case due to its growth projects, strong financial health, and favorable market conditions for gold [21].

Group 1 - Earnings season is a critical period where companies disclose their financial performance, impacting market participants significantly [1][2] - Earnings reports provide essential updates on revenues, expenses, and profits, exemplified by Palantir's revenue growth guidance upgrade leading to a 35% YoY revenue growth forecast [3][4] - Companies like Netflix experienced substantial share price increases post-earnings due to positive surprises in subscriber metrics and earnings per share (EPS) growth of 25% [5][6] Group 2 - Earnings season highlights current economic trends; for instance, poor performance from retail companies may indicate a slowing economy, while strong earnings suggest consumer health [10] - Newmont, a major gold producer, reported record free cash flow of $1.6 billion and an average gold price of $2,643 per ounce, reflecting favorable market conditions [11][12] - Analysts have raised EPS expectations across various sectors due to positive operating environments, indicating potential investment opportunities [12]

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [5] Momentum Score - The Momentum Score is designed for traders who capitalize on price trends, using factors like recent price changes and earnings estimate revisions to identify high-momentum stocks [6] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investing styles [7] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring the highest probability of success [11] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [12] Company Spotlight: Newmont Corporation - Newmont Corporation is a leading gold producer with significant reserves and production capabilities, holding 134.1 million ounces of gold reserves and producing approximately 6.8 million ounces in 2024 [13] - Newmont has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong potential for growth [13][14] - The company is forecasted to achieve year-over-year earnings growth of 12.6% for the current fiscal year, with upward revisions in earnings estimates from analysts [14]

Core Viewpoint - Newmont Corporation is positioned as a strong investment opportunity due to its robust financial performance, strategic asset management, and favorable market conditions for gold, driven by economic uncertainty and rising gold prices [1][10]. Financial Performance - In Q1 2025, Newmont's net income surged to $1.9 billion, over ten times the amount from the same period last year, with adjusted earnings per share at $1.25, exceeding analyst expectations [3]. - Free cash flow reached $1.2 billion, marking a significant achievement despite a production decline to 1.54 million ounces due to recent asset sales [3]. - The total sustaining cost per ounce was $1,651, but the net profit margin improved, with the revenue-cost gap remaining well above $1,000 per ounce [3]. Asset Management - Newmont has strategically divested six smaller, less profitable mines, generating over $4 billion in cash, and is now focusing on 11 long-life, lower-cost mines [1][4]. - The company has a strong balance sheet with $4.7 billion in cash and total debt of $7.5 billion, resulting in a net debt to EBITDA ratio of 0.3 [3][4]. Growth Prospects - Newmont anticipates a total production of 5.6 million ounces for 2025, with over half expected in the second half of the year, driven by projects like Ahafo North in Ghana and the Tanami expansion in Australia [7]. - The company aims to increase production to 6.4 million ounces annually by 2027, supported by the expansion of the Cadia mine and growing global demand for precious metals [7]. Market Conditions - Economic uncertainty, inflation risks, and geopolitical tensions are driving demand for gold, with prices soaring to $3,325 per ounce [1]. - Newmont's diversified operations, including increased copper production post-Newcrest acquisition, reduce operational risks and align with global electrification trends [7][8]. Valuation and Returns - Newmont's forward P/E ratio is approximately 13, with an EBITDA multiple of about 6.4, indicating attractive valuation compared to peers [10][11]. - The company offers a dividend yield of around 2%, with potential for increase if gold prices remain high, alongside an ongoing stock buyback program [10].

Core Insights - Gold prices have surged past $3000 per ounce in Q2 2025, driven by central banks globally increasing their gold reserves [1] - Geopolitical tensions and slowing global growth are contributing factors to the renewed interest in gold as a safe-haven asset [1] Industry Summary - Central banks around the world are actively stocking up on gold, indicating a strategic shift in monetary policy and asset allocation [1] - The increase in gold prices reflects broader economic concerns, including geopolitical instability and a slowdown in global economic growth [1]

Company Overview - Newmont Corporation (NYSE: NEM) is the world's largest publicly traded gold producer and is currently in very good financial shape [1] - The company has faced challenges in recent years, including rising costs, integration issues following the acquisition of Newcrest, and declining production [1] Financial Performance - Despite recent challenges, Newmont is noted for its strong financial position [1] Investment Criteria - The company is characterized by growth in revenue, earnings, and free cash flow, which are important investment criteria [1] - Newmont is considered to have excellent growth prospects and favorable valuations [1] - The company is recognized for its high free cash flow margins, dividend payments, and share repurchase programs [1]