Gold prices have been soaring to record highs due to broader market uncertainty and this is fueling the demand for safe-haven assets. Newmont Corporation (NYSE:NEM) is becoming the focal point for institutional investors and billionaires due to gold recently surpassing $3,500 per ounce. Analysts now project it could reach $4,000 by mid-2026.
Newmont is the world’s largest gold producer, so it’s naturally turning out to be a compelling bet. Here’s why Wall Street’s elite are doubling down.
Newmont is the only gold producer in the S&P 500 with a portfolio that spans 11 Tier 1 mines across Africa, Australia, and the Americas. It is expected to report Q1 earnings after market close on April 23, and this could lead to another boost in the stock if metrics show soaring gold prices translating into the company’s income statement and balance sheet.
Its 2025 guidance shows a stable output of 5.9 million ounces, and costs are projected at $1,620 per ounce. It is selling non-core assets to streamline operations, and the gold rally has supercharged Newmont’s revenue. Analysts anticipate Q1 2025 revenue of $4.6 billion, with EPS of $2.86.
Gold has strong macroeconomic tailwinds, and any increase in gold prices is directly going to improve NEM stock’s prospects. It trades at a 14 times forward earnings multiple with a dividend yield of 1.83%.
The stock itself is still down 13.6% in the past five years. It has plenty of upside potential left if you look at its historical peaks. Considering how gold prices are surging, it’s enough to offset any production losses. It may be only a matter of time before NEM stock hits new highs once more.
