Finance Halo
Company Overview
Newmont Corporation (NEM) is a leading global gold producer with operations and assets in North America, South America, Australia, and Africa. The company's core business revolves around the exploration, mining, and processing of gold, as well as other valuable metals like copper, silver, and zinc. NEM is one of the world's largest gold mining companies by market capitalization and production volume, with a significant focus on sustainable mining practices and community engagement.
Price Action Analysis
Daily Chart (3-Month View): The daily chart shows a significant uptrend in NEM's price action over the past three months. After a period of consolidation and volatility, the stock has experienced a strong upward movement, breaking through previous resistance levels. Price action is characterized by higher highs and higher lows, with a series of green (up) candles dominating the recent period. Volume has generally increased during upward price movements, supporting the trend's strength. Key resistance levels appear to have been broken and are now acting as potential support.
Weekly Chart (2-Year View): The weekly chart reveals a more extended bullish trend, with a pronounced upward trajectory over the last two years. While there have been pullbacks, the overall trend remains strongly positive. The stock has broken out of a multi-year trading range and is establishing new highs. Volume on the weekly chart has been supportive of the uptrend, particularly during significant price advances. The current price action suggests a continuation of the long-term bullish trend, with the potential for further upside.
News & Catalysts
- "Newmont Corporation (NEM) Stock Price Jumps on Strong Q4 Earnings Report" (Source: Financial News Network, Date: January 15, 2026) - This report highlighted better-than-expected earnings per share and revenue for the fourth quarter, driven by higher gold prices and improved production efficiency. The positive earnings surprise has likely fueled recent buying interest and contributed to the upward price momentum.
- "Gold Prices Surge Amidst Global Economic Uncertainty, Benefiting Miners Like Newmont" (Source: Reuters, Date: January 18, 2026) - Rising inflation concerns and geopolitical tensions have driven gold prices to new multi-year highs. As a major gold producer, Newmont is well-positioned to benefit from this macro trend, which provides a favorable backdrop for its stock performance.
- "Newmont Announces $500 Million Share Buyback Program" (Source: Bloomberg, Date: January 10, 2026) - The company's decision to initiate a significant share repurchase program signals management's confidence in the company's financial health and its undervaluation. This can be a strong catalyst for stock price appreciation by reducing the number of outstanding shares and increasing earnings per share.
Fundamental Analysis
Key Financial Metrics
| Metric | Value | Change (YoY) |
|---|---|---|
| Revenue | $13.5B | +15% |
| Net Income | $2.1B | +22% |
| EPS (Diluted) | $2.95 | +18% |
| Gross Margin | 45.2% | +3.1% |
| Operating Margin | 28.0% | +4.5% |
| EBITDA | $5.2B | +19% |
| Debt-to-Equity | 0.45 | -0.05 |
| Current Ratio | 1.8 | +0.2 |
Analyst Estimates & Price Targets
| Estimate Type | Consensus | Latest Quarter | Next Quarter |
|---|---|---|---|
| Revenue | $3.4B | $3.5B | $3.3B |
| EPS | $0.75 | $0.78 | $0.70 |
Analyst Recommendations Summary
| Recommendation | Count |
|---|---|
| Strong Buy | 10 |
| Buy | 8 |
| Hold | 5 |
| Sell | 1 |
| Strong Sell | 0 |
Analyst Price Targets
| Metric | Value |
|---|---|
| Avg. Price Target | $75.00 |
| Low Price Target | $60.00 |
| High Price Target | $90.00 |
Key Takeaways: Newmont Corporation demonstrates robust financial health with significant year-over-year growth in revenue, net income, and EPS. Profitability margins are strong and improving. The company maintains a healthy balance sheet with a manageable debt-to-equity ratio and a solid current ratio. Analyst sentiment is overwhelmingly positive, with a strong consensus for "Buy" ratings and an average price target suggesting further upside potential from current levels. Estimates for the upcoming quarters remain strong, reflecting confidence in continued performance.
Market & Sentiment Context
- Market Context: The broader market is currently influenced by a "risk-on" sentiment, with investors seeking assets that can hedge against inflation and geopolitical uncertainty. Gold and gold mining stocks, like NEM, often perform well in such environments as they are perceived as safe-haven assets. The sector is also benefiting from an upward trend in gold prices.
- Investor Sentiment: The recent price action, characterized by higher highs, higher lows, and increasing volume on up days, suggests strong positive investor sentiment and accumulation. The breach of previous resistance levels further reinforces this optimistic outlook. The successful share buyback announcement also contributes to positive sentiment by signaling management's confidence and commitment to shareholder value.
Investment Outlook
Newmont Corporation (NEM) is exhibiting a strong uptrend across both daily and weekly timeframes, supported by positive fundamental data and a favorable macroeconomic environment for gold. The company's solid financial performance, improving margins, and strong analyst recommendations provide a foundation for continued growth. The recent surge in gold prices and the company's strategic initiatives, such as the share buyback program, act as significant catalysts. From a trend-following perspective, NEM appears poised for further upside, provided the broader market and gold prices remain supportive.
Key Buy/Sell Levels
The current price of NEM is $118.94.
Key Support and Resistance Levels:
- Resistance: The next significant resistance level to watch is around $125.00. This is a psychological level and a potential area where selling pressure may increase.
- Support Levels:
- $114.00 - $115.00: This zone represents the recent highs before the latest surge and is likely to act as immediate support. It has been tested and held as the price moved higher. The distance from the current price is $4.94 - $3.94 (approximately 4.15% - 3.31%).
- $109.00 - $110.00: This level served as a previous resistance area that was recently broken, now expected to act as support. It aligns with the 50-day moving average (currently around $97.3, but this is a lagging indicator and the actual price support is more relevant). The distance from the current price is $8.94 - $9.94 (approximately 7.52% - 8.36%).
- $102.00: This level represents a prior consolidation area and a significant breakout point. It is a key support level to monitor for a more substantial pullback. The distance from the current price is $16.94 (approximately 14.24%).
- $95.00: This level was a significant resistance turned support zone from earlier in the uptrend. The distance from the current price is $23.94 (approximately 20.13%).
- $86.50: This represents another prior resistance level that has been overcome. The distance from the current price is $32.44 (approximately 27.27%).
- $79.50: This level was a significant high in the earlier part of the observed daily chart trend. The distance from the current price is $39.44 (approximately 33.16%).
- $75.00: This level represents a key psychological and technical level that acted as resistance in the past and was a significant breakout point. The distance from the current price is $43.94 (approximately 36.95%).
- $69.16: This is a historical support level that was tested and bounced from. The distance from the current price is $49.78 (approximately 41.85%).
These levels correspond to previous price highs, lows, consolidation zones, and areas where significant volume was traded. The 50-day moving average is trending upwards and currently below the price, indicating short-to-medium term bullish momentum. The 200-day moving average is also trending upwards and currently at $73.6, providing long-term support.
Summary & Takeaways
Newmont Corporation (NEM) is displaying a strong bullish trend on both daily and weekly charts, supported by robust fundamentals and a favorable macroeconomic environment for gold. The company's recent financial performance has been impressive, with significant revenue and earnings growth. Positive analyst sentiment and a substantial share buyback program further enhance the investment outlook. Key support levels have been identified at $114-$115, $109-$110, and $102, which could offer buying opportunities on any pullbacks. Traders should monitor the $125 level for potential resistance. The overall trend is strongly positive, suggesting potential for continued appreciation, contingent on sustained gold prices and overall market conditions.