Key Highlights:
- Newmont's (NEM, Financial) Return on Capital Employed (ROCE) is on par with industry standards at 12%.
- Despite a modest stock return of 2.6%, fundamentals point to potential long-term growth.
- Analyst consensus rates Newmont as an "Outperform" with a significant upside potential.
Newmont Corp (NEM) has shown promising developments worth the attention of savvy investors. Its Return on Capital Employed (ROCE) currently stands at a robust 12%, aligning well with industry norms. Over the past five years, Newmont has increased its capital employed by 30%, a clear indicator of possible future growth. While the stock's return over this period has been a modest 2.6%, the underlying fundamentals suggest there could be valuable gains in the longer term.
Wall Street Analysts' Forecasts: A Bullish Outlook
Wall Street analysts maintain a positive outlook on Newmont Corp. According to projections from 18 analysts, the average one-year price target for Newmont is $61.21, representing a potential upside of 11.13% from the current share price of $55.08. Notably, these estimates range from a high of $77.50 to a low of $52.00, indicating a bullish sentiment. For further insights, feel free to consult the Newmont Corp (NEM, Financial) Forecast page.
The consensus recommendation from 20 brokerage firms ranks Newmont at an average of 2.0, denoting an "Outperform" status. This ranking is on a scale from 1 to 5, where 1 signals a Strong Buy and 5 indicates a Sell. This consensus highlights a broader market confidence in Newmont's performance potential.
GuruFocus Estimates: Value Assessment
According to GuruFocus estimates, the projected GF Value for Newmont in a year stands at $48.48. This suggests a downside risk of 11.98% from the current price of $55.08. The GF Value is a representation of the fair market value, calculated based on historical trading multiples, past business growth, and future performance predictions. More detailed evaluations are accessible on the Newmont Corp (NEM, Financial) Summary page.
In conclusion, while Newmont Corp presents some near-term valuation challenges, its solid fundamental performance and positive analyst forecasts signal potential opportunities for investors willing to look beyond immediate volatility.
