Newmont's Average Brokerage Recommendation Suggests a Strong Buy

Newmont Corporation (NEM) has an average brokerage recommendation (ABR) of 1.86, based on 21 brokerage firm recommendations. The ABR suggests a "Strong Buy" rating. However, studies show that brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Retail investors should use this information to validate their own analysis or a tool like Zacks Rank, which has a proven track record of predicting stock price movements.

Newmont Corporation (NEM), a leading gold mining company with operations across several continents, has recently garnered attention from investors. The company's stock has shown a slight decline, but analysts and financial experts have differing views on its future prospects.

Brokerage Recommendations

According to a recent report, Newmont Corporation has an average brokerage recommendation (ABR) of 1.86, based on 21 brokerage firm recommendations. This suggests a "Strong Buy" rating, indicating that the majority of analysts are optimistic about the stock's potential [1].

However, studies have shown that brokerage recommendations often have little to no success in guiding investors to choose stocks with the most potential for price appreciation. This is primarily due to the vested interests of brokerage firms in the stocks they cover, leading to a strong positive bias in their recommendations [2].

Zacks Rank

To validate their own analysis or make more informed investment decisions, retail investors should consider using tools like the Zacks Rank. The Zacks Rank is a proprietary stock rating tool that has a proven track record of predicting stock price movements. It categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to #5 (Strong Sell), and has an impressive externally audited track record [2].

Newmont Corporation is currently sporting a Zacks Rank of #3 (Hold). The Zacks Consensus EPS estimate for the company has moved 9.29% higher over the past month, indicating analysts' positivity towards the company's earnings prospects [3].

Investment Considerations

Despite the positive sentiment from brokerage analysts, investors should approach Newmont Corporation's stock with caution. The company's earnings report, expected on July 24, 2025, will be of great interest to investors. The company is forecasted to report an EPS of $1.01, showcasing a 40.28% upward movement from the corresponding quarter of the prior year [3].

Investors should also consider the company's valuation metrics. Newmont Corporation is currently trading at a Forward P/E ratio of 13.16, which is in line with its industry's average Forward P/E ratio of 13.16 [3].

Conclusion

While brokerage recommendations can provide valuable insights, they should not be the sole basis for investment decisions. Retail investors should use tools like the Zacks Rank to validate their own analysis and make more informed investment choices. Newmont Corporation's stock may present a compelling opportunity for investors, but it is essential to consider all available data and make decisions based on a thorough understanding of the company's fundamentals and market conditions.

References

[1] https://site.financialmodelingprep.com/market-news/newmont-corporation-gold-investment-opportunity
[2] https://finance.yahoo.com/news/brokers-suggest-investing-merck-mrk-133004466.html
[3] https://finance.yahoo.com/news/newmont-corporation-nem-laps-stock-215004567.html