NEWMONT CORP (NYSE:NEM) - A Gold Stock with Sustainable Growth and Attractive Valuation

NEWMONT CORP (NYSE:NEM) stands out as a potential candidate for long-term investors seeking growth at a reasonable price (GARP). The company, a leading gold producer, meets several key criteria from Peter Lynch’s investment strategy, including strong profitability, manageable debt, and an attractive valuation relative to its growth prospects.

Key Strengths of NEWMONT CORP

• Sustainable Earnings Growth: NEM has delivered a 5-year average EPS growth of 21.58%, well within Lynch’s preferred range of 15-30%. This indicates steady, sustainable expansion rather than overheated growth.
• Attractive Valuation: The stock’s PEG ratio (0.44) is significantly below 1, suggesting it is undervalued relative to its earnings growth. The P/E ratio of 12.59 also compares favorably to both industry peers and the broader market.
• Strong Profitability: With a Return on Equity (ROE) of 16.22%, NEM outperforms nearly 89% of its industry peers, reflecting efficient use of shareholder capital.
• Healthy Balance Sheet: A Debt/Equity ratio of 0.25 aligns with Lynch’s conservative approach, indicating minimal reliance on borrowing. The Current Ratio of 1.98 further confirms solid liquidity.

Fundamental Highlights

NEWMONT CORP earns a fundamental rating of 7/10, with high marks for profitability and valuation. The company maintains strong margins, including a 35.28% Operating Margin, and generates consistent cash flow. While future revenue growth may slow, its current financial health and earnings trajectory make it a compelling option for GARP investors.

For a deeper dive, review the full fundamental analysis of NEM.

Our Peter Lynch Strategy screener lists more stocks that fit this disciplined approach.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.