Newmont: 3 Reasons I'm Avoiding This Stock
Seeking Alpha
February 23, 2026
AI-Generated Deep Dive Summary
Newmont Corporation (NEM) has been a hot topic in financial circles due to its strong ties to gold prices. While the yellow metal continues to attract investor enthusiasm, analysts have raised concerns about NEM stock as a potential sell candidate. This bearish outlook stems from several key factors that could impact long-term performance and returns for shareholders.
One major concern is Newmont’s valuation. Despite robust demand for gold, driven by inflation fears and geopolitical tensions, the company’s stock price has already reflected much of this optimism. Analysts argue that NEM is currently trading at a premium compared to its peers, making it less attractive for new investors seeking undervalued opportunities in the sector.
Another critical issue is Newmont’s reliance on gold prices for revenue growth. While gold remains a key driver of the company’s performance, its operations are highly sensitive to fluctuations in the market. Investors are cautioned that any decline in gold prices could significantly impact NEM’s profitability, especially given the high costs associated with mining and production.
Finally, market sentiment plays a crucial role in Newmont’s stock performance. While gold’s appeal as a hedge against inflation and
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Originally published on Seeking Alpha on 2/23/2026