Why Newmont Stock Sizzled to a 52-Week High Today

• The Federal Reserve's latest complaint chopped is driving golden prices higher.

• Newmont is generating grounds currency flows connected precocious golden prices and declining costs.

• At slightest a mates of analysts spot much than 25% upside successful the golden stock.

• 10 stocks we similar amended than Newmont ›

Shares of Newmont (NYSE: NEM) were shining agleam this morning, rising 4.7% higher arsenic of 11:15 a.m. ET Thursday and hitting a 52-week precocious of $99.21 per share. Gold prices are firming up aft the Federal Reserve chopped involvement rates, and astatine slightest 2 analysts judge Newmont banal could emergence by much than 25% from here.

The Federal Reserve chopped involvement rates connected Wednesday for the 3rd clip successful 2025, driving the terms of golden higher. Interest rates and golden prices are mostly inversely related. That's due to the fact that erstwhile involvement rates fall, safe-haven assets similar golden go much charismatic than bonds.

It's a win-win for Newmont, the world's largest golden producer. Newmont is connected coagulated footing, generating a grounds escaped currency travel of $1.6 cardinal successful its latest quarter, marking its 4th consecutive 4th with implicit $1 cardinal successful FCF. In summation to higher golden prices, Newmont's cost-cutting initiatives are besides boosting its margins and currency flows.

Just days ago, expert Fahad Tariq from Jefferies gave Newmont banal a terms people of $120 per share. Earlier successful December, expert Daniel Major from UBS raised the golden stock's terms nonsubjective from $105.5 per stock to $125 a share. Both analysts are bullish astir golden and expect golden miners to make larger margins and currency flows amid beardown request and higher golden prices.

Shares of Newmont person surged 160% successful 2025, arsenic of this writing. While that whitethorn discourage investors from buying the banal now, Newmont's premium valuation is backed by grounds currency flows.

Newmont is, successful fact, 1 of the champion golden stocks retired there, boasting monolithic golden reserves, dependable production, and declining costs. Newmont is besides flush with currency and fortifying its equilibrium sheet, having divested assets worthy astir $2.6 cardinal successful 2025 and repaying astir $3.4 cardinal successful indebtedness this year. The golden banal besides pays a dividend and repurchases shares regularly, further reflecting management's assurance successful the company's aboriginal success.

Before you bargain banal successful Newmont, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Newmont wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.