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
| Headquarters (Founded) |
Greenwood Village, Colo. (1916) |
| Market Cap |
$33.2 billion |
| Industry |
Gold |
| Trailing-12-Month Revenue |
$10.1 billion |
| Management |
CEO Richard O'Brien (since 2007)
CFO Russell Ball (since 2007) |
| Return on Equity (Average, Past 3 Years) |
18.1% |
| Cash/Debt |
$2.22 billion / $4.24 billion |
| Dividend Yield |
2.1% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 93% of the 1,175 members who have rated Newmont believe the stock will outperform the S&P 500 going forward. These bulls include sid1138 and americanbuffalo.
This past summer, sid1138 touched on macro trends working in Newmont's favor:
Governments around the world are screwing up BIGTIME. This means more and more people around the world will want gold. ... What happens when demand grows dramatically? Prices increase. What happens when a company has a product where demand increases? Profits increase. Enough said.
Newmont, in particular, sports a cheapish P/E of 15.3. That represents a clear discount to other gold plays like Goldcorp (NYSE: GG ) (26.5), Kinross Gold (NYSE: KGC ) (24.2), and Yamana Gold (NYSE: AUY ) (21.5).
CAPS member americanbuffalo expands on the outperform argument:
Like many of the miners Newmont was lagging the long term bull market in gold but recently this has changed. Back in April the company linked its dividend directly to the price of gold and since then [Newmont] has had a very close correlation to the price of gold. Gold will continue to rise due to expanding government debt and out of control fiat money creation and Newmont will rise with it.
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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