NEM Should I Buy
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Newmont Corporation (NEM) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong Q1 2026 financial performance, hedge fund interest, and undervaluation make it an attractive opportunity, despite some operational risks in Ghana. The current price of $111.72 in pre-market trading offers a solid entry point for long-term growth.
The MACD is bearish with a negatively expanding histogram (-0.274), and RSI is neutral at 42.196. However, moving averages are bullish (SMA_5 > SMA_20 > SMA_200), indicating an upward trend. Key support is at $109.46, and resistance is at $120.187, suggesting limited downside risk.
Strong Q1 2026 financial results with $7.31 billion in revenue (45.9% YoY growth) and EPS of $2.90 exceeding expectations.
Record $3.8 billion in cash flow and $3.1 billion in free cash flow.
$6 billion share repurchase authorization.
Hedge funds are significantly increasing their positions (364.37% increase in buying).
Analysts view the stock as undervalued with a strong asset portfolio.
Operational risks due to Ghanaian government mandates requiring a shift to local firms.
Rising costs from higher diesel prices and operational disruptions (e.g., Cadia mine pause, bushfires in Boddington).
Mixed analyst ratings with some downgrades and reduced price targets.
Newmont achieved $7.31 billion in Q1 2026 revenue (45.9% YoY growth) and $3.8 billion in cash flow from operations. Free cash flow reached $3.1 billion, and EPS of $2.90 exceeded expectations. However, in 2025/Q4, net income dropped by 7.27% YoY, and EPS declined by 4.03% YoY, though gross margin improved significantly (up 32.17%).
Analyst sentiment is mixed. While CIBC and Bernstein maintain optimistic views with high price targets ($176 and $157, respectively), National Bank downgraded the stock to Sector Perform with a reduced price target of $130, citing rising costs and operational challenges. UBS and Citi maintain Buy ratings with adjusted price targets of $140 and $150, respectively.
