Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold producer Newmont Mining (NYSE: NEM ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Newmont Mining's business, and see what CAPS investors are saying about the stock right now.
Newmont facts
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Headquarters (founded)
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Denver (1916)
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Market Cap
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$11.6 billion
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Industry
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Gold
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TTM Revenue
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$6.3 billion
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Management
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CEO Richard O'Brien (since 2007)
CFO Russell Ball (since 2007)
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Return on Capital (average last 3 years)
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7.5%
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Dividend Yield
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1.6%
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Competitors
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Barrick Gold (NYSE: ABX ) ,
BHP Billiton (NYSE: BHP )
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CAPS members bullish on NEM also bullish on
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Yamana Gold (NYSE: AUY ) ,
Freeport-McMoRan Copper & Gold (NYSE: FCX )
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CAPS members bearish on NEM also bearish on
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Goldcorp (NYSE: GG ) ,
SPDR Gold Shares (NYSE: GLD )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 94% of the 829 members who have rated Newmont believe the stock will outperform the S&P 500 going forward. These Foolish bulls include CAPS All-Star rickyt1986 and 4thRockFool.
Just last week, rickyt1986 shared this golden nugget with our community: "With all the money that the US is giving these companies, the price of the dollar will become weak. While in a recession with a weak dollar, natural resources such as gold will gain value."
A pitch from 4thRockFool in September shares that defensive mind-set, highlighting the stock as a relatively inexpensive inflation-hedge:
Gold play based on fundamentals (supply and demand) and a hedge against inflation. NEM is trading near a 52 week low. Recent correction in gold and other commodities is overblown. The fundamentals have not changed - China, et al. will continue to need gold and other metals to grow their economies. Recent massive infusions of capital by the Fed pose significant inflation risk for which gold is the refuge of choice.
What do you think about Newmont Mining, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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