Newmont Corporation (NYSE:NEM) shares are trading lower. The stock company reported fourth-quarter results on Thursday.
• Newmont shares are experiencing downward pressure. Why are NEM shares declining?
Earnings Top Estimates
The company reported earnings of $2.52 per share, which beat the consensus estimate of $2, and revenue clocked in at $6.82 billion, which beat the analyst consensus estimate of $6.16 billion.
The company reported an attributable gold production increase of 2% to 1,453,000 ounces compared to the prior quarter, driven by the addition of new, low-cost ounces at Ahafo North, higher grade at Tanami and Merian, and higher production from the non-managed joint venture at Nevada Gold Mines.
2026 Guidance
The company expects total attributable production of 5.3 million ounces, including 3.9 million ounces from managed operations and 1.4 million ounces from non-managed operations.
The company sees all-in sustaining costs of about $1,680 per ounce, with a gold price assumption of $4,500 per ounce.
Also, Newmont projects sustaining capital of $1.950 billion and development capital of $1.400 billion.
Technical Analysis
Over the past year, Newmont has seen a significant appreciation, with its stock price increasing by 153.90%. The stock is currently trading 0.7% above its 20-day SMA and 23.2% above its 100-day SMA, showcasing a strong mid to long-term bullish trend. However, it remains below the recent high of $134.88, indicating some resistance near these levels.
The technical indicators present a mixed view. The RSI stands at 58.18, suggesting that the stock is neither overbought nor oversold, hovering in neutral territory. Meanwhile, the MACD indicates a bearish signal, as it currently resides below the signal line, which could be causing some investors to exercise caution.
Earnings & Analyst Outlook
Newmont is slated to provide its next financial update on April 22. With the earnings date more than two months away, the focus is currently on the company’s strategic maneuvers and market positioning.
- EPS Estimate: $1.90 (Up from $1.25 year-over-year)
- Revenue Estimate: $6.18 Billion (Up from $5.01 Billion YoY)
- Valuation: P/E of 19.5x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $82.87. Recent analyst moves include:
- Scotiabank: Sector Outperform (Raises target to $152 on Jan. 26)
- UBS: Buy (Raises target to $125 on Dec. 1, 2025)
- Scotiabank: Upgraded to Sector Outperform (Raises target to $114 on Oct. 23, 2025)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Newmont, highlighting its strengths and weaknesses compared to the broader market:
- Value: Moderate (Score: 58.94/100) — Reflects a balanced valuation relative to peers.
- Quality: Strong (Score: 93.94/100) — Indicates high operational and financial quality.
- Momentum: Strong (Score: 96.76/100) — Demonstrates robust market performance and investor interest.
The Verdict: Newmont’s Benzinga Edge signal reveals a company with strong quality and momentum metrics, suggesting robust operational performance and investor confidence. However, its moderate value score indicates a fair market valuation, suggesting that the stock might be priced appropriately.
Top ETF Exposure
- State Street Materials Select Sector SPDR ETF (NYSE:XLB): 7.63% Weight
- Vanguard Materials ETF (NYSE:VAW): 7.83% Weight
NEM Price Action: Newmont shares are down 2.63% at $122.20 at publication on Friday.
Photo: CHUYKO SERGEY via Shutterstock
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