NEWMONT CORP (NYSE:NEM) – A Gold Stock with Strong Growth Metrics

NEWMONT CORP (NYSE:NEM) stands out as a compelling candidate for growth investors following Louis Navellier’s "Little Book That Makes You Rich" strategy. The company, a major player in gold and metals mining, meets several key criteria outlined in the book, including strong earnings revisions, accelerating growth, and high profitability. Below, we break down why NEM fits this strategy.

Key Strengths Aligning with Navellier’s Strategy

1. Positive Earnings Revisions
   Analysts have raised NEM’s next-quarter EPS estimates by 6.81% over the past three months, signaling confidence in near-term performance.

2. Consistent Earnings Surprises
   The company has surpassed earnings expectations in three of the last four quarters, with an average surprise of 18.75%.

3. Accelerating Revenue Growth
   Year-over-year revenue growth stands at 49.51%, while quarterly sales increased 24.53%, reflecting strong demand and operational execution.

4. Expanding Profitability
   Operating margins surged 305.77% over the past year, indicating improved cost efficiency alongside revenue growth.

5. Robust Cash Flow Generation
   Free cash flow grew 468.62% year-over-year, providing financial flexibility for reinvestment or shareholder returns.

6. High Return on Equity (ROE)
   NEM’s ROE of 16.22% outperforms most industry peers, demonstrating effective use of shareholder capital.

Valuation and Risks

Despite its growth, NEM trades at a reasonable valuation with a P/E ratio of 12.61, below both industry and S&P 500 averages. However, future revenue growth is expected to slow, and dividend payouts have declined slightly.

For a deeper analysis, review the full fundamental report for NEM.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.