NEM Stock Momentum: Is Newmont Corporation's Rally Built to Last?

Industry Spotlight: Gold Mining Sector on Fire

The Mining - Gold industry is currently capturing significant investor attention, ranking in the top 12% of all sectors. This tailwind has created an ideal environment for well-positioned players like Newmont Corporation (NEM) and Agnico Eagle Mines Limited (AEM) to capitalize on favorable market conditions. Both companies have demonstrated strong fundamentals that extend beyond mere sector enthusiasm.

NEM’s Recent Performance and Market Position

Newmont Corporation has captured headlines with impressive near-term momentum, posting a 10.8% gain over the past month. The stock recently achieved a 52-week peak of $100.41, reflecting sustained buying interest. More significantly, NEM has delivered a 167.1% year-to-date return, substantially outpacing the Basic Materials sector’s 29.8% advance and handily beating the Mining - Gold industry’s 147.8% performance.

Financial Strength: Where the Numbers Tell the Story

Newmont’s recent earnings results validate the market’s enthusiasm. In October 2025, the company reported EPS of $1.71 against a consensus projection of $1.29—a notable beat. Revenue performance was equally impressive, surpassing analyst expectations by 11.06%. This follows a track record of consistent earnings surprises across the last four quarterly reports.

Looking forward, management guidance paints an encouraging picture. For the current fiscal year, Newmont is positioned to deliver $6.06 in earnings per share on $21.12 billion in revenues. This reflects a 74.14% EPS expansion coupled with a 13.05% revenue increase. Into the following year, the company forecasts $7.07 per share earnings on $22.74 billion in sales—representing year-over-year growth of 16.61% and 7.67% respectively.

Valuation: Separating Fair Value from Hype

While the stock’s 52-week high might suggest investors have run ahead of fundamentals, the valuation picture remains nuanced. NEM currently trades at 16.4X forward fiscal year earnings—below the peer average of 17.6X. On a trailing cash flow basis, the metric stands at 17.1X versus competitors’ 21X average, suggesting some relative restraint in pricing.

The PEG ratio of 0.69 offers additional perspective, though these metrics alone don’t position NEM as a bargain-basement opportunity. Using the Zacks Style Score framework, NEM carries a Value Grade of C alongside identical C ratings for Growth and Momentum, yielding a combined VGM Score of B. This mixed assessment suggests the stock trades somewhere between fairly valued and moderately optimistic.

Why Investors Should Pay Attention

The critical factor driving bullish sentiment is Newmont’s Zacks Rank of #1 (Strong Buy), driven by solid earnings revision momentum. This designation, combined with a B-rated VGM Score, satisfies the typical criteria for stocks worthy of investor consideration. The convergence of strong financial performance, reasonable valuation relative to peers, and improving analyst sentiment creates a compelling case for continued strength.

The Competitive Landscape

Agnico Eagle Mines Limited (AEM) represents a worthy comparison point. Also carrying a #1 (Strong Buy) ranking, AEM boasts a stronger Momentum Score of A, though with a D Value rating. The company delivered 22.73% earnings surprise last quarter and projects $9.43 per share earnings this fiscal year on $11.14 billion in revenues. AEM currently trades at a 21.9X forward P/E and 23.55X price-to-cash-flow—reflecting a premium to NEM’s valuation.

Shares of AEM have appreciated only 0.9% over the past month, suggesting more room for upside if the gold mining rally extends.

Looking Ahead

The combination of sector strength, reasonable valuations, and improving earnings trajectories suggests both NEM and AEM could sustain their upward trajectory. Investors contemplating exposure to the mining sector would be well-served evaluating these two leaders alongside current market dynamics.