Based on the aggregated intelligence of 180,000-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.
With that in mind, let's take a closer look at Newmont'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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Greenwood Village, Colo. (1916)
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Market Cap
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$29 billion
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Industry
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Gold
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Trailing-12-Month Revenue
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$10 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 Equity (average, past 3 years)
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17.4%
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Cash/Debt
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$2.06 billion / $4.31 billion
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Dividend Yield
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2%
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Competitors
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AngloGold Ashanti (NYSE: AU )
Gold Fields (NYSE: GFI )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,104 members who have rated Newmont believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars yooperking and kurtdabear, both of whom are ranked in the top 15% of our community.
Just last month , yooperking tapped Newmont as a golden opportunity: "With a P/E of 12.69 ... this seems a pretty safe way of investing in gold. Of course if gold plummets, earnings and dividend could drop, but I think it's highly unlikely this will happen with the current looney tunes in Washington DC."
In fact, Newmont's current cheapish P/E of 13 represents a clear discount to other gold stocks such as AngloGold Ashanti (22), Gold Fields (37), and Yamana Gold (NYSE: AUY ) (19).
CAPS All-Star kurtdabear expands on the outperform case:
NEM is one of the big blue chips of gold mining, and when the main stream market decides it's time to buy gold, NEM will be one of the primary beneficiaries. NEM is interesting because they've linked their dividend rate to the price of gold, so a near-term dividend increase is pretty well baked into the stock.
What do you think about Newmont, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Newmont? Add it to your watchlist.
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