Investors with an interest in Mining - Gold stocks have likely encountered both Newmont Corporation (NEM) and Royal Gold (RGLD) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identi ...

Market Overview - The AI-driven bull run of 2023 and 2024 has faced setbacks in 2025 due to the Fed's uncertainty over rate cuts, recession fears, and competition from a low-cost Chinese AI platform [1] - Concerns regarding the Trump administration's tariff and trade policies have negatively impacted confidence in risky assets, particularly in the technology sector [2] Company Highlights Howmet Aerospace Inc. (HWM) - HWM is experiencing strong momentum in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft [6] - The company has a projected revenue growth rate of 8.5% and an earnings growth rate of 28.6% for the current year, with a 4.2% improvement in earnings estimates over the last 30 days [7] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a total investment of $950 million to $1,050 million [10][11] - The expected revenue growth rate is 2% and earnings growth rate is 20.1% for the current year, with a 9.7% increase in earnings estimates over the last 30 days [11] Sprouts Farmers Market Inc. (SFM) - SFM focuses on product innovation, e-commerce, and private label offerings, leading to better-than-expected fourth-quarter results [12] - The company anticipates net sales growth of 10.5% to 12.5% and comparable store sales growth of 4.5% to 6.5% for 2025, with expected revenue growth of 13.7% and earnings growth of 35.5% for the current year [13][14] GE Aerospace (GE) - GE Aerospace is benefiting from strong demand for commercial engines and rising defense budgets, with an expected organic revenue growth in the low-double-digit range [15][16] - The company has a projected revenue decline of 6.8% but an earnings growth rate of 19.6% for the current year, with a slight improvement in earnings estimates [16] Curtiss-Wright Corp. (CW) - CW is capitalizing on the global shift towards alternative energy, particularly in nuclear power, with potential orders for 20-25 new reactors in Central and Eastern Europe [17][18] - The expected revenue growth rate is 8.5% and earnings growth rate is 15.7% for the current year, with a 0.5% improvement in earnings estimates [19]

Core Insights - Newmont Corporation (NEM) and Kinross Gold Corporation (KGC) are significant players in the gold mining industry, with global operations and diversified portfolios. Gold prices, while down from April 2025 highs, remain favorable due to safe-haven demand amid trade and geopolitical uncertainties, currently above $3,300 per ounce [1][2]. Gold Market Dynamics - Gold prices have increased approximately 28% this year, driven by aggressive trade policies, global trade tensions, and central bank accumulation of gold reserves. Prices peaked at $3,500 per ounce on April 22, 2025, amid calls for interest rate cuts [3]. Newmont Corporation (NEM) - Newmont is actively investing in growth projects, including the Tanami Expansion 2 in Australia and the Ahafo North expansion in Ghana, aimed at increasing production capacity and extending mine life [5]. - The acquisition of Newcrest Mining Limited has enhanced Newmont's portfolio, generating $500 million in annual run-rate synergies and creating a multi-decade production profile [6]. - Newmont has divested non-core assets, generating total after-tax cash proceeds of $4.3 billion, which includes $1.7 billion from three assets sold in March 2025 and $850 million from additional sales [7]. - The company reported liquidity of $8.8 billion at the end of Q1 2025, with operating cash flow increasing 162% year-over-year to around $2 billion [8]. - Newmont returned $1 billion to shareholders through dividends and share repurchases and reduced debt by $1 billion since the beginning of 2025, maintaining a long-term debt-to-capitalization ratio of around 20% [10]. Kinross Gold Corporation (KGC) - Kinross has a strong production profile with key projects like Great Bear in Ontario and Round Mountain Phase X in Nevada, expected to enhance production and cash flow [11]. - Tasiast and Paracatu are the main contributors to Kinross's cash flow, with Tasiast being the lowest-cost asset and achieving record production in 2024 [12]. - Kinross ended Q1 2025 with liquidity of approximately $2.3 billion and generated record free cash flows of around $1.3 billion in 2024 [13]. - The company repaid $800 million of debt in 2024, reducing net debt to around $540 million, with a long-term debt-to-capitalization ratio of 14.4% [14]. Stock Performance and Valuation - Year-to-date, NEM stock has increased by 46.5%, while KGC stock has risen by 66.8%, outperforming the Zacks Mining – Gold industry's increase of 54.4% [15]. - NEM trades at a forward 12-month earnings multiple of 12.59, approximately 10% below the industry average of 14X, while KGC trades at a premium with a multiple of 13.37 [18][20]. - The Zacks Consensus Estimate for NEM's 2025 sales and EPS indicates a year-over-year rise of 2% and 20.1%, respectively, while KGC's estimates imply growth of 15.3% and 63.2% [21][24]. Investment Considerations - Both Newmont and Kinross are well-positioned to benefit from favorable gold prices, demonstrating strong financial performance and commitment to shareholder returns. Newmont is viewed as a more attractive investment due to its valuation and higher dividend yield [25].

1. Report Industry Investment Rating No information provided on the report industry investment rating. 2. Core Views of the Report - The anticipation of a looser supply situation in the zinc concentrate mining sector has largely materialized, with the treatment charge (TC) continuing to rise. The annual production guidance for major overseas zinc concentrate producers remains mostly unchanged, and the upward trend in annual zinc concentrate production is expected to continue [3][50]. - Given the strong expectation of refinery复产 and the off - peak demand season, an inflection point in zinc ingot inventory may emerge [3]. - The zinc price is expected to be strong in the short - term and weak in the long - term. In the short run, low inventory provides some support, but weak demand restricts upward movement. In the long run, with increased supply and limited demand growth, the zinc price may face pressure [4]. 3. Summary by Directory 3.1 Total Overview - In March 2025, the global zinc market surplus narrowed to 23,700 tons. The first three months of 2025 saw a global supply surplus of 143,000 tons, slightly lower than the 148,000 tons surplus in the same period last year [12]. - In Q1 2025, global zinc concentrate production was 2.9021 million tons, a 9.75% decrease quarter - on - quarter and a 2.99% increase year - on - year. Global refined zinc production was 3.278 million tons, a 2.32% decrease quarter - on - quarter and a 3.55% decrease year - on - year [12]. 3.2 Glencore - Glencore's 2025 zinc concentrate production guidance is 93 - 990,000 tons, consistent with the initial expectation. Q1 production was 213,600 tons, a 18.29% decrease quarter - on - quarter and a 3.89% increase year - on - year. Increases mainly came from Antamina and the Australian region [19]. 3.3 Teck - Teck's 2025 zinc concentrate production guidance is 525,000 - 575,000 tons. Q1 production was 177,300 tons, a 6.19% decrease quarter - on - quarter and a 14.08% decrease year - on - year. Reductions mainly came from the Red Dog mine [22]. 3.4 Boliden - In Q1 2025, Boliden's zinc concentrate production was 57,900 tons, a 38.95% increase quarter - on - quarter and a 45.78% increase year - on - year. Increases mainly came from the复产 of the Tara mine [24]. 3.5 Vedanta - In Q1 2025, Vedanta's zinc concentrate production was 264,000 tons, a 5.60% increase quarter - on - quarter and a 4.35% increase year - on - year. Increases mainly came from Gamsberg, partially offset by the reduction at Black Mountain Mine [27]. 3.6 Nexa - Nexa's 2025 zinc concentrate production guidance is 311,000 - 351,000 tons. Q1 production was 67,300 tons, an 8.44% decrease quarter - on - quarter and a 22.82% decrease year - on - year. Except for Cerro Lindo, zinc production at other mines declined [31]. 3.7 MMG - MMG's 2025 zinc concentrate production guidance is 215,000 - 240,000 tons. Q1 production was 51,800 tons, a 19.02% decrease quarter - on - quarter and a 12.65% decrease year - on - year [37]. 3.8 Newmont Goldcorp - Newmont's 2025 zinc concentrate production guidance is 236,000 tons. Q1 production was 59,000 tons, a 23.38% decrease quarter - on - quarter and a 2.42% increase year - on - year [38]. 3.9 BHP - BHP's fiscal 2025 zinc concentrate production guidance is 90,000 - 110,000 tons. Q1 production was 26,000 tons, a 14.19% increase quarter - on - quarter and a 41.38% increase year - on - year [40]. 3.10 Lundin Mining - In Q1 2025, Lundin Mining's zinc concentrate production was 48,900 tons, a 5.77% decrease quarter - on - quarter and a 7.14% increase year - on - year [41]. 3.11 South32 - In Q1 2025, South32's zinc concentrate production was 11,000 tons, a 1.85% increase quarter - on - quarter and a 23.08% decrease year - on - year. The production guidance for the Cannington mine in fiscal 2025 was lowered to 45,000 tons [43]. 3.12 Grupo Mexico - SCC - In Q1 2025, SCC's zinc concentrate production was 39,400 tons, an 8.75% decrease quarter - on - quarter and a 49.40% increase year - on - year. The full - load operation of the Buenavista zinc concentrator contributed to the increase [44]. 3.13 Industrials Pelones - In Q1 2025, Pelones' zinc concentrate production was 57,700 tons, a 5.65% decrease quarter - on - quarter and a 13.86% decrease year - on - year. Reductions mainly came from the closure of the Tizapa mine and the depletion of the San Julian mine [45]. 3.14 Fresnillo plc - Fresnillo plc's 2025 zinc concentrate production guidance is 93,000 - 103,000 tons. Q1 production was 25,200 tons, a 12.79% decrease quarter - on - quarter and a 3.47% decrease year - on - year. Reductions mainly came from lower ore grades at Fresnillo and Cienega and the shutdown of the San Julian mine [47]. 3.15 Kaz Mineral - In Q1 2025, Kaz Mineral's zinc concentrate production was 9,300 tons, a 19.13% decrease quarter - on - quarter and a 11.43% decrease year - on - year, despite the highest quarterly throughput of ore [50]. 3.16 Market Outlook - The anticipation of a looser supply situation in the mining sector has materialized, and the TC continues to rise. The annual production guidance for major overseas zinc concentrate producers remains mostly unchanged, and the upward trend in annual zinc concentrate production is expected to continue. The TC for domestic and imported zinc concentrates has increased [50]. - Given the strong expectation of refinery复产 and the off - peak demand season, an inflection point in zinc ingot inventory may emerge. The zinc price is expected to be strong in the short - term and weak in the long - term [3][4].

Core Insights - Newmont Corporation (NEM) achieved a record first-quarter free cash flow of $1.2 billion, a significant improvement from a negative $74 million in the same period last year, driven by enhanced operational efficiency and a strong Tier 1 portfolio [1][7] - Despite the strong first-quarter performance, sustainability concerns exist for the second quarter due to non-core asset divestitures, increased tax payments, and higher capital expenditures [2][3][7] - The anticipated decline in free cash flow is attributed to long-term growth initiatives rather than deteriorating fundamentals, supported by a solid balance sheet [3][7] Peer Comparisons - Barrick Mining Corporation reported a free cash flow of $375 million for the first quarter, reflecting a nearly 12-fold year-over-year increase due to higher operating cash flows from increased gold and copper prices [4] - Agnico Eagle Mines Limited generated first-quarter free cash flows of $594 million, up approximately 50% year over year, supported by strong gold prices and operational results [5] Market Performance - Newmont's shares have increased by 48.5% year to date, compared to a 53.9% rise in the Zacks Mining – Gold industry, largely driven by the rally in gold prices [6] - The Zacks Consensus Estimate for NEM's earnings in 2025 and 2026 implies year-over-year increases of 20.1% and 11.7%, respectively, with EPS estimates trending higher over the past 60 days [8] - NEM is currently trading at a forward 12-month earnings multiple of 12.59, approximately 10% below the industry average of 13.97 [9]

Factors Influencing Newmont's Stock Movements in Recent Months Newmont (NYSE:NEM)'s stock has experienced quite a bit of volatility this year. It began the year on a weak note, primarily impacted by declining gold prices and concerns regarding costs and production delays. However, things started to improve as gold prices surged—thanks to global uncertainty and increased purchases by central banks. Thus far in 2025, NEM has made a solid recovery, regaining a significant portion of its previous losses. Althou ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's future earnings and financial health [4] - Momentum Score assesses stocks based on price trends and earnings estimate changes [5] - VGM Score combines all three styles to identify stocks with the best overall potential [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock Example: Newmont Corporation - Newmont Corporation is a leading gold producer with significant reserves and production capabilities [11] - The company holds a 1 (Strong Buy) Zacks Rank and has a VGM Score of A, indicating strong investment potential [11] - Newmont's Growth Style Score is B, with a projected year-over-year earnings growth of 20.1% for the current fiscal year [12] - Recent analyst revisions have increased earnings estimates, further supporting Newmont's strong performance outlook [12]

Industry Overview - Gold prices have been on the rise, reaching $3,415.57/ounce on May 5 and stabilizing around $3,300/ounce thereafter, positively impacting gold mining stocks [1][2] - The increase in gold prices is attributed to concerns over U.S. government debt, weak demand for long-term treasury bonds, and a declining dollar, with the World Gold Council noting a scarcity of gold deposits in the mining industry [2] - Central banks in emerging economies are increasing their gold purchases, and the rising use of gold in energy, healthcare, and technology is expected to create a demand-supply imbalance, further driving prices [3] Investment Opportunities - Investing in gold mining stocks with a favorable Zacks Rank is recommended, with five highlighted stocks: Franco-Nevada Corp. (FNV), Newmont Corp. (NEM), Kinross Gold Corp. (KGC), Royal Gold Inc. (RGLD), and Agnico Eagle Mines Ltd. (AEM), all currently rated as Strong Buy [4] Positive Catalysts - Global central banks are cutting interest rates to stimulate economic growth, which benefits non-income-bearing assets like gold, while a weak U.S. dollar increases demand for dollar-denominated gold [5] - Ongoing geopolitical conflicts, such as the Russia-Ukraine war and unrest in Southeast Asia, are expected to keep gold prices buoyant as it is viewed as a safe-haven investment [6] - Major investment banks like Goldman Sachs and JP Morgan predict gold prices could reach $4,000/ounce by 2026, indicating continued bullish momentum [7] Company-Specific Insights Franco-Nevada Corp. (FNV) - FNV is positioned for strong earnings growth due to increased contributions from streaming agreements and a focus on cost management despite lower output from Cobre Panama [10] - The company has a debt-free balance sheet and plans to use free cash flow for portfolio expansion and dividends, with expected revenue and earnings growth rates of 31.5% and 29.9%, respectively, for the current year [11][12] Newmont Corp. (NEM) - NEM is advancing its growth projects, including the Tanami expansion and the Ahafo North project, with a commitment to invest $950 million to $1,050 million in development capital [13][14] - The expected revenue and earnings growth rates for NEM are 2% and 20.1%, respectively, for the current year [14] Kinross Gold Corp. (KGC) - KGC has a strong production profile and is focusing on organic growth through projects like Tasiast, which is expected to enhance production and cash flow [15][16] - The expected revenue and earnings growth rates for KGC are 15.3% and 63.2%, respectively, for the current year [17] Royal Gold Inc. (RGLD) - RGLD benefits from solid streaming agreements and a strong balance sheet, with plans to allocate cash flow towards dividends, debt reduction, and new ventures [18][19] - The expected revenue and earnings growth rates for RGLD are 24.1% and 35.2%, respectively, for the current year [19] Agnico Eagle Mines Ltd. (AEM) - AEM is focused on executing projects that will enhance production and cash flows, with strategic acquisitions and expansions strengthening its market position [20][21] - The expected revenue and earnings growth rates for AEM are 23% and 42.6%, respectively, for the current year [22]

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]