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Gold Rally Continues: These 3 Mining Stocks Are Likely to Benefit

Gold nugget

Key Points

  • Investors pay a premium for Newmont stock, but the company’s revenue and earnings back up its premium valuation.
  • Rising gold prices may offset any tariff concerns on Freeport McMoRan’s core copper business. 
  • Barrick Gold has the benefit of quality and scale, and lower interest rates are likely to boost earnings expectations.
  • MarketBeat previews the top five stocks to own by August 1st.

Gold continues to be one of the best-performing assets in the last 12 months. The yellow metal is up about 29% in the last 12 months. And with both inflation and recession fears remaining front and center for investors, there’s reason to believe that gold may have more room to run. 

Gold has its detractors as an investment. But if you look at it as a hedge against inflation, gold holds up pretty well. According to industry data, the price of gold has climbed an average of 9.7% in the last 25 years. Astute investors will point out that gold’s performance pales in comparison to the SPY ETF, which has about a 27% annual return over the same period.

However, gold has a different role and weight in an investor’s portfolio. While Bitcoin (i.e., digital gold) has also blown past gold’s performance, there’s a significant difference in the risk premium between the two assets. 

That said, many investors will shy away from owning physical gold. But there’s still a way to get involved. Gold mining stocks typically lag the price of physical gold, but that means that 2025 is likely to be a big year for them; here are three names to consider.

Newmont Corporation Deserves Its Premium Valuation

Newmont Stock Forecast Today

12-Month Stock Price Forecast:
$58.38
-0.74% Downside
Moderate Buy
Based on 17 Analyst Ratings
Current Price$58.82
High Forecast$66.00
Average Forecast$58.38
Low Forecast$45.00
Newmont Stock Forecast Details

Newmont Corporation NYSE: NEM is the world’s largest gold miner, and its valuation supports that. As of April 10, 2025, NEM stock trades at a trailing twelve-month (TTM) price-to-earnings (P/E) ratio of 16.6x, which is higher than the 15.1x sector average for basic materials stocks

But many investors can justify a higher price if you get what you pay for. And that’s the case with Newmont Corporation. The company’s revenue and earnings were sharply up year-over-year (YOY) in 2024 as the company was able to take advantage of gold’s rising price. 

A similar setup is in play for 2025. Of the three mining stocks on this list, NEM is trading closest to analysts’ forecasts. However, if gold continues charging higher, those forecasts will likely rise.

It May Be Time for Gold to Shine for Freeport McMoRan

Freeport-McMoRan Stock Forecast Today

12-Month Stock Price Forecast:
$48.27
5.63% Upside
Moderate Buy
Based on 14 Analyst Ratings
Current Price$45.70
High Forecast$58.00
Average Forecast$48.27
Low Forecast$39.00
Freeport-McMoRan Stock Forecast Details

Freeport McMoRan Inc. NYSE: FCX may not be the first name investors think about as a gold miner. But in the company’s most recent quarter, gold accounted for approximately 14% of the mining company’s revenue.

The company’s forecast presumes more of the same. Freeport McMoRan’s 1.6 million ounce production forecast is based on an average gold price of around $2,700 per ounce. However, that estimate may be conservative with the spot price of gold over $3,100 as of April 10. 

The company’s gold profile can offset any uncertainty surrounding its copper business. At the CESCO conference in Santiago, Kathleen Quirk, president and chief executive officer (CEO), expressed concerns about the impact of tariffs on global copper demand. 

That hasn’t caused analysts to waver. The Freeport McMoRan analyst forecasts on MarketBeat give the stock a $49.88 consensus price target, which would be a 60% increase for investors. 

Barrick Gold Remains One of the Best in Class Miners

Like Freeport McMoRan, Barrick Gold Corp. NYSE: GOLD mines both copper and gold. However, in the case of Barrick Gold, the company’s revenue and earnings are heavily weighted to gold. The company is one of the world’s largest miners, with operations in 18 countries spanning four continents. In addition to size, Barrick owns many of the world’s largest and most prized portfolios of top-quality gold.

However, that size makes Barrick susceptible to interest rates. With expectations that the Federal Reserve will cut interest rates in 2025, and perhaps multiple times, the current earnings estimate from Barrick may be too low. 

GOLD stock is trading above its 50- and 200-day simple moving average (SMA). Analysts continue to be bullish on the stock, with a $23.79 price target that implies a 22% upside. 

Should You Invest $1,000 in Freeport-McMoRan Right Now?

Before you consider Freeport-McMoRan, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Freeport-McMoRan wasn't on the list.

While Freeport-McMoRan currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Chris Markoch
About The Editor

Chris Markoch

Editor & Contributing Author

Value Investing, Retirement, Dividend Stocks, Individual Investing

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Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Newmont (NEM)
4.7075 of 5 stars
$59.411.0%1.68%13.32Moderate Buy$58.38
Freeport-McMoRan (FCX)
4.6734 of 5 stars
$46.184.8%0.65%38.18Moderate Buy$48.27
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