Analysis of Newmont Mining's Stock Price Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy NEM?
Source: NASDAQ.COM
- Stock Performance: Newmont Mining (NYSE: NEM) has seen its stock price rise by 120% over the past year, despite experiencing dramatic drawdowns of 10%, 20%, and 25%, illustrating the direct impact of gold price volatility on its stock.
- Gold Dependency: As a major gold producer, Newmont's revenue is heavily reliant on gold prices, with stock prices typically rising as gold prices increase and falling when gold prices decline, highlighting the company's sensitivity to commodity fluctuations.
- Investment Risks: While Newmont offers investors exposure to gold, its stock may exhibit greater volatility than gold itself, necessitating careful risk assessment by investors to ensure they can withstand potential market fluctuations.
- Market Sentiment Impact: Investor sentiment plays a crucial role in Newmont's stock price volatility, as Wall Street's emotional reactions to short-term price movements often exacerbate stock fluctuations, reflecting the fundamental dynamics of the gold industry.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.330
Low
89.00
Averages
110.85
High
125.00
Current: 108.330
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Newmont Mining's Stock Volatility
- Stock Performance: Newmont Mining's shares have surged 120% over the past year, yet the stock has also faced significant drawdowns of 10%, 20%, and 25%, indicating substantial volatility that investors should be aware of.
- Gold Price Dependency: As a major gold producer, Newmont's performance is heavily tied to gold prices; when gold prices rise, the stock price typically follows suit, and vice versa, highlighting the company's close relationship with the gold market.
- Volatility Characteristics: While Newmont offers exposure to gold, its stock can be even more volatile than gold itself, especially during periods of fluctuating market sentiment, which investors need to consider when evaluating risk.
- Investment Recommendation: For investors looking to add modest gold exposure to a diversified portfolio, Newmont Mining presents a reasonable option, but they must be prepared to handle the high volatility associated with the gold market.
See More
Analysis of Newmont Mining's Stock Volatility
- Stock Performance Volatility: Newmont Mining (NYSE: NEM) has seen its shares rise by 120% over the past year, yet it has also experienced significant drawdowns of 10%, 20%, and 25%, indicating the stock's extreme volatility that investors should be cautious about.
- Gold Price Dependency: As a large mining company, Newmont primarily produces gold, with other metals like silver, copper, lead, and zinc contributing minimally to revenue; thus, fluctuations in gold prices directly impact the company's performance, leading to higher stock prices when gold prices rise.
- Investor Sentiment Impact: Investor sentiment plays a crucial role in Newmont's stock price volatility, as Wall Street tends to react emotionally to short-term price changes, and the relatively stable mining costs amplify profit volatility during gold price fluctuations.
- Cautious Investment Advice: While Newmont offers investors indirect exposure to gold, the inherent volatility of gold necessitates a careful risk assessment before investing, especially given that the analyst team has not included it in their list of top investment stocks currently.
See More
Analysis of Newmont Mining's Stock Price Volatility
- Stock Performance: Newmont Mining (NYSE: NEM) has seen its stock price rise by 120% over the past year, despite experiencing dramatic drawdowns of 10%, 20%, and 25%, illustrating the direct impact of gold price volatility on its stock.
- Gold Dependency: As a major gold producer, Newmont's revenue is heavily reliant on gold prices, with stock prices typically rising as gold prices increase and falling when gold prices decline, highlighting the company's sensitivity to commodity fluctuations.
- Investment Risks: While Newmont offers investors exposure to gold, its stock may exhibit greater volatility than gold itself, necessitating careful risk assessment by investors to ensure they can withstand potential market fluctuations.
- Market Sentiment Impact: Investor sentiment plays a crucial role in Newmont's stock price volatility, as Wall Street's emotional reactions to short-term price movements often exacerbate stock fluctuations, reflecting the fundamental dynamics of the gold industry.
See More
SPMO Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: SPMO's 52-week low is $95.455 per share, with a high of $132.88, and the last trade at $131.99 indicates the stock is nearing its peak, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the current stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and identify potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of ETF share changes helps identify those experiencing significant inflows or outflows, providing insights into market dynamics and potential impacts on underlying assets.
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- Shifting Hiring Trends: Net hiring by India's top five IT companies dropped by around 7,000 in FY26, with TCS planning to hire only 25,000 fresh graduates compared to an average of 40,000 over the past three years, indicating a diminishing reliance on large-scale recruitment in the industry.
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- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
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Analysis of Newmont Mining's Stock Volatility
- Stock Performance: Newmont Mining's shares have surged 120% over the past year, yet the stock has also faced significant drawdowns of 10%, 20%, and 25%, indicating substantial volatility that investors should be aware of.
- Gold Price Dependency: As a major gold producer, Newmont's performance is heavily tied to gold prices; when gold prices rise, the stock price typically follows suit, and vice versa, highlighting the company's close relationship with the gold market.
- Volatility Characteristics: While Newmont offers exposure to gold, its stock can be even more volatile than gold itself, especially during periods of fluctuating market sentiment, which investors need to consider when evaluating risk.
- Investment Recommendation: For investors looking to add modest gold exposure to a diversified portfolio, Newmont Mining presents a reasonable option, but they must be prepared to handle the high volatility associated with the gold market.
See More
Analysis of Newmont Mining's Stock Volatility
- Stock Performance Volatility: Newmont Mining (NYSE: NEM) has seen its shares rise by 120% over the past year, yet it has also experienced significant drawdowns of 10%, 20%, and 25%, indicating the stock's extreme volatility that investors should be cautious about.
- Gold Price Dependency: As a large mining company, Newmont primarily produces gold, with other metals like silver, copper, lead, and zinc contributing minimally to revenue; thus, fluctuations in gold prices directly impact the company's performance, leading to higher stock prices when gold prices rise.
- Investor Sentiment Impact: Investor sentiment plays a crucial role in Newmont's stock price volatility, as Wall Street tends to react emotionally to short-term price changes, and the relatively stable mining costs amplify profit volatility during gold price fluctuations.
- Cautious Investment Advice: While Newmont offers investors indirect exposure to gold, the inherent volatility of gold necessitates a careful risk assessment before investing, especially given that the analyst team has not included it in their list of top investment stocks currently.
See More
Analysis of Newmont Mining's Stock Price Volatility
- Stock Performance: Newmont Mining (NYSE: NEM) has seen its stock price rise by 120% over the past year, despite experiencing dramatic drawdowns of 10%, 20%, and 25%, illustrating the direct impact of gold price volatility on its stock.
- Gold Dependency: As a major gold producer, Newmont's revenue is heavily reliant on gold prices, with stock prices typically rising as gold prices increase and falling when gold prices decline, highlighting the company's sensitivity to commodity fluctuations.
- Investment Risks: While Newmont offers investors exposure to gold, its stock may exhibit greater volatility than gold itself, necessitating careful risk assessment by investors to ensure they can withstand potential market fluctuations.
- Market Sentiment Impact: Investor sentiment plays a crucial role in Newmont's stock price volatility, as Wall Street's emotional reactions to short-term price movements often exacerbate stock fluctuations, reflecting the fundamental dynamics of the gold industry.
See More
SPMO Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: SPMO's 52-week low is $95.455 per share, with a high of $132.88, and the last trade at $131.99 indicates the stock is nearing its peak, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the current stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and identify potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of ETF share changes helps identify those experiencing significant inflows or outflows, providing insights into market dynamics and potential impacts on underlying assets.
See More
India's IT Sector Faces Employment Crisis Amid AI Disruption
- Deepening Employment Crisis: Bernstein warns that the rise of AI may lead to a reduction in high-quality jobs in India's IT sector, affecting the income and consumption capacity of 10 to 15 million employees in IT services and outsourcing, thereby threatening the foundation of national economic growth.
- Shifting Hiring Trends: Net hiring by India's top five IT companies dropped by around 7,000 in FY26, with TCS planning to hire only 25,000 fresh graduates compared to an average of 40,000 over the past three years, indicating a diminishing reliance on large-scale recruitment in the industry.
- Skills Gap Challenge: While the Indian government emphasizes
See More
U.S. Stocks Close Lower, Weighed Down by Tech Sector
- Tech Sector Decline: Technology stocks fell broadly as concerns about the return on massive AI investments grew, with OpenAI missing its new user and sales targets, putting pressure on shares of partners like Nvidia and Oracle, which negatively impacted market sentiment.
- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
See More
