Newmont's Smart Sell-offs and Strong Earnings Make It a Top Gold Play – Buy Now!

The mining sector has always been a rollercoaster, but Newmont Corporation (NEM) isn't just surviving—it's dominating. With strategic divestitures, soaring earnings, and a Zacks Rank #1 (Strong Buy), this gold giant is primed to outperform in a rising metal environment. Let's dive into why this stock should be at the top of your radar.

The Divestiture Play That's Paying Off

Newmont isn't just sitting on its reserves—it's reinventing. In 2025, the company completed its non-core divestiture program, offloading six underperforming assets for $4.3 billion in gross proceeds. Think of this as a “house cleaning” move: getting rid of the clutter to focus on crown jewels like Nevada's high-grade gold deposits and Peru's prolific operations.

The proceeds? A goldmine for investors. Newmont plans to use the cash to strengthen its balance sheet and reward shareholders through buybacks. Take the sale of the Akyem mine in Ghana and Porcupine in Canada—those deals didn't just net cold, hard cash; they also gave Newmont 15% ownership in Discovery Silver Corp., a stake that could multiply if silver prices surge.

Earnings Surge: Analysts Are Raising the Bar

Numbers don't lie. Analysts have raised NEM's 2025 EPS estimate by 20% to $4.18, with six upgrades in the last 60 days alone. That's not just a blip—it's a trend. The stock has already jumped 10.7% in four weeks, trouncing the S&P 500's anemic 0.5% gain.

Here's the kicker: The Zacks Rank #1 isn't just a number. This rating has averaged 25% annual returns since 1988, and it's triggered here because earnings momentum is accelerating. However, historical data shows that a short-term trading strategy around earnings beats delivers mixed results. When buying NEM on earnings beat announcements and holding for 30 days from 2020–2025, the strategy underperformed the benchmark, returning just 9.49% versus the benchmark's 109.95%. This underscores the importance of a long-term perspective, as sustained momentum often requires patience. With a 31.4% surge in consensus EPS over three months, this isn't a flash in the pan—it's a firestorm.

Valuation: Is the Price Right?

Some might say NEM is pricey at a forward P/E of 13.93, slightly above the gold industry's 12.79. But here's why that's a bargain: The PEG ratio of 0.98 suggests growth is catching up to valuation. And with gold prices flirting with $2,000/oz, Newmont's 134.1 million ounces in reserves are like a loaded gun.

This isn't a “buy and pray” stock. It's a calculated bet on a company that's cut costs, boosted margins, and improved its gold grade from 1.2g/t to 1.8g/t. That's like upgrading from a .22 rifle to a howitzer.

Gold's Rally: NEM's Tailwind

Gold is more than a safe haven—it's a currency of distrust in a world of trade wars, central bank chaos, and inflation. Newmont's 6.8 million ounces produced in 2024 and its position in the top-ranked Zacks Mining - Gold industry (Rank #42) mean it's built to capitalize.

The Bottom Line: Fire Away

Newmont isn't just a gold stock—it's a strategic masterpiece. With $4.3 billion in proceeds fueling its balance sheet, analysts piling into earnings upgrades, and gold prices on the rise, this is a “Strong Buy” that's already proving its mettle.

Action Items:
- Buy NEM now if you're bullish on gold and want a stock with both near-term earnings pop and long-term growth.
- Keep an eye on Zijin Mining's Akyem operations and Greatland Gold's Telfer mine—their success could be a proxy for NEM's divestiture strategy.

The Zacks Rank #1 isn't a fluke. It's a buy signal. Don't miss this one—get in now before the price climbs further.

Disclosure: This is not financial advice. Consult your advisor before making investments.