Key Points Scotiabank just raised its price target on Newmont stock by 33%. Newmont costs less than 20x earnings, and is growing earnings at nearly 60%. 10 stocks we like better than Newmont › Newmont Corporation (NYSE: NEM) stock jumped 2.6% through 11:35 a.m. ET Monday after investment bank Scotiabank raised its price target on the mining stock a whopping 33%, to $152 per share, with an outperform rating (i.e., buy). Image source: Getty Images. Why Scotiabank loves Newmont stock Gold prices sur ...

Core Viewpoint - Precious metal stocks experienced a significant pre-market rally, with notable increases in share prices for several companies as gold and silver prices reached historical highs [1] Group 1: Company Performance - First Majestic Silver (AG.US) rose over 5% [1] - Pan American Silver (PAAS.US) increased by over 4% [1] - Endeavour Silver (EXK.US) saw a nearly 4% rise [1] - Newmont Corporation (NEM.US) gained over 2% [1] - Harmony Gold Mining (HMY.US) was up over 1% [1] Group 2: Market Trends - On January 26, London spot gold prices briefly surpassed $5,100 per ounce, marking a historical peak [1] - London spot silver also strengthened, with prices rising over 5% to exceed $110 per ounce [1]

Company News - CoreWeave's stock rose over 10% in pre-market trading following reports that Nvidia is investing $2 billion to purchase Class A common stock of CoreWeave [1] - An American rare earth company saw its stock surge by as much as 60% in pre-market trading, later settling at a near 20% increase after announcing a letter of intent with the U.S. government to secure $1.6 billion in funding [1] - IonQ's stock increased by 2.6% in pre-market trading as the company announced it will acquire SkyWater Technology at a price of $35 per share [1]

Core Viewpoint - U.S. gold mining stocks experienced significant pre-market gains, indicating positive market sentiment towards the sector [1] Company Performance - Newmont Corporation saw a rise of 4.6% [1] - AngloGold Ashanti increased by 1.6% [1] - Sibanye-Stillwater rose by 2.4% [1] - Barrick Gold Corporation experienced a 3.5% increase [1]

Group 1: Newmont Corporation (NEM) - Newmont Corporation has surged to the top of Wall Street's most overbought stocks list, with shares reaching a 52-week high of $123.04, closing at $121.67, reflecting a 2.3% increase [2][7] - The company's market capitalization has risen to approximately $132.8 billion, driven by a robust gold rally and strong earnings performance [2][7] - Despite a consensus "Buy" rating from analysts, the 14-day Relative Strength Index (RSI) is at 77, indicating overbought conditions and a potential short-term risk of a pullback [3][7] - Newmont reported quarterly earnings per share of $1.71, beating estimates of $1.27, and revenue of $5.52 billion, which is up 20% year-over-year [3][7] - The average realized gold price reached $3,320 per ounce, a $973 per ounce increase year-over-year, significantly benefiting the company [3][7] Group 2: Berkshire Hathaway (BRK.A, BRK.B) - New CEO Greg Abel has indicated a potential divestment of Berkshire Hathaway's substantial stake in Kraft Heinz, holding approximately 325 million shares [4][5] - The investment in Kraft Heinz has been described as "troubled" due to its underperformance, with the stock recently hitting a new 12-month low following multiple analyst downgrades [4][5] - Analyst ratings for Kraft Heinz have been downgraded, with Exane BNP Paribas cutting its rating to "Strong Sell" and "Underperform," indicating increasing pressure on the company [5][7] - The potential exit from Kraft Heinz suggests a strategic re-evaluation of Berkshire Hathaway's portfolio, moving away from long-standing, underperforming assets [5][7]

Core Viewpoint - Newmont Corporation (NYSE:NEM) is recognized as one of the best-performing silver stocks to buy, with positive outlooks from major financial institutions [1]. Group 1: Analyst Ratings and Price Targets - Citi raised Newmont's price target from $104 to $118 while maintaining a Buy rating, reflecting updated company guidelines and commodity price estimates [2]. - Raymond James increased its price target for Newmont from $99 to $111, reaffirming an Outperform rating based on revised gold price estimates for Q4 [3]. Group 2: Commodity Production - Newmont Corporation is one of the largest gold mining companies globally and also produces significant amounts of copper, silver, zinc, and lead as byproducts [4].

Core Viewpoint - The article discusses the emergence of "The Magnificent Miners" as a new investment opportunity, contrasting them with the previously dominant "Magnificent Seven" tech stocks, highlighting a potential capital rotation towards hard assets like mining stocks as macroeconomic uncertainties rise [1]. Group 1: Valuation Comparisons - Newmont Corp (NYSE:NEM) is trading at a 19x TTM and 17x FWD P/E ratio, significantly lower than AI infrastructure stocks, despite having the largest gold reserve base [3]. - Barrick Mining Corp (NYSE:B) generates substantial free cash flow and returns capital to shareholders, trading at around 24x TTM and 15x FWD P/E, which appears modest compared to high-flying tech stocks [4]. - Agnico Eagle Mines Ltd (NYSE:AEM) has a higher valuation at 31x TTM and about 20x FWD P/E, yet it remains attractive due to low-cost production and growth projects, offering a blend of quality and growth without tech-like valuations [5]. Group 2: Market Implications - The current pricing of the Magnificent Seven reflects an optimistic AI future, while the Magnificent Miners are priced for indifference, suggesting potential for upside if economic conditions shift [6]. - The article notes that if interest rates decrease, deficits increase, or AI spending slows, miners could benefit from a capital rotation away from crowded tech investments, indicating a possible shift in market dynamics [6].

Core Viewpoint - The article discusses the emergence of "The Magnificent Miners" as a new investment opportunity, contrasting them with the previously dominant "Magnificent Seven" tech stocks, highlighting a potential capital rotation towards hard assets like mining stocks as macroeconomic uncertainties rise [1]. Group 1: Valuation Comparisons - Newmont Corp (NYSE:NEM) trades at a 19x TTM and 17x FWD P/E ratio, significantly lower than AI infrastructure stocks, despite having the largest gold reserve base [3]. - Barrick Mining Corp (NYSE:B) generates substantial free cash flow and returns capital to shareholders, trading at around 24x TTM and 15x FWD P/E, which appears modest compared to high-flying tech stocks [4]. - Agnico Eagle Mines Ltd (NYSE:AEM) has a P/E of 31x TTM and about 20x FWD, reflecting a premium among miners, yet still appears undervalued compared to growth stocks, offering low-cost production and growth potential [5]. Group 2: Market Implications - The Magnificent Seven are priced for an ideal AI future, while The Magnificent Miners are priced with indifference, suggesting that if economic conditions change, miners could present significant upside potential as capital shifts away from crowded tech sectors [6].

Group 1: Gold Prices and Newmont Corporation - Gold prices continue to grow, providing a significant tailwind for Newmont Corporation, one of the largest gold mining companies globally [1] - Newmont Corporation's stock has experienced strong momentum, gaining 35% recently [1] Group 2: Analyst Background and Insights - The analyst has a background in IT and has been managing a family portfolio in the U.S. stock market for seven years, gaining confidence in investment decisions through fundamental analysis [1] - The analyst aims to share insights and contribute to the investor community, focusing on clarity and accessibility for investors of all experience levels [1] - The analyst's experience extends beyond technology stocks, exploring diverse sectors to uncover promising investment opportunities [1]

Group 1 - Gold prices continue to grow, providing a significant advantage for Newmont Corporation, one of the largest gold mining companies globally [1] - Newmont Corporation's stock has experienced strong momentum, gaining 35% recently [1] Group 2 - The article emphasizes the importance of fundamental analysis in making confident investment decisions [1] - The author aims to share insights and contribute to the investor community through clear and accessible articles [1]