Newmont Is Too Cheap To Ignore

Summary

  • Newmont Corporation stock seems to be quite undervalued today. I expect it to continue its recent uptrend due to the rise in gold prices.
  • The company's financials in Q1 2024 showed strong performance, with increased revenue and improved operating cash flow. FCF is set to improve this year.
  • Despite potential risks, such as management's ability to optimize costs and market fluctuations, the discount in NEM's valuation outweighs the risks.
  • I initiate coverage of NEM stock today with a "Buy" rating.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Stacks of gold bars forming an oval shape

J Studios

My Thesis

Judging by the way the price of gold has been behaving lately, I think the valuation of Newmont Corporation (NYSE:NEM) stock is moving further and further away from its fair value. As one of the

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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