#2 - Newmont Gold (NYSE:NEM)
It’s been difficult to get a fix on the price of gold in the past 12 months. Despite being an inflation hedge, precious metals of all types have largely been running in place. That includes mining stocks like Newmont Corporation (NYSE: NEM). NEM stock is down 23% for the year, making it a laggard compared to the S&P 500.
Nevertheless, if you’re looking for low-beta stocks to add to your portfolio, NEM stock is worth a close look. For starters, it’s the world’s largest gold miner. Revenue and earnings are likely to be flat over the next five years, but you’re investing in a stock like Newmont for the consistency of its dividend, which currently has a yield of over 4%.
And when it comes to Newmont and other mining stocks, the stock price is usually driven by demand for gold. As of this writing, the supply of gold was up a little above 1% for the year. However, at the end of the third quarter, demand was up 18% for the year, putting it back at pre-pandemic levels. This supply-demand imbalance may continue as central banks make moves to increase their gold supplies in the face of sticky inflation.
About Newmont
Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.
Read More - Current Price
- $41.45
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $48.35 (16.7% Upside)
