Shares of Newmont (NEM +5.29%) were shining bright this morning, rising 4.7% higher as of 11:15 a.m. ET Thursday and hitting a 52-week high of $99.21 per share. Gold prices are firming up after the Federal Reserve cut interest rates, and at least two analysts believe Newmont stock could rise by more than 25% from here.
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Newmont is making the most of high gold prices
The Federal Reserve cut interest rates on Wednesday for the third time in 2025, driving the price of gold higher. Interest rates and gold prices are generally inversely related. That's because when interest rates fall, safe-haven assets like gold become more attractive than bonds.
It's a win-win for Newmont, the world's largest gold producer. Newmont is on solid footing, generating a record free cash flow of $1.6 billion in its latest quarter, marking its fourth consecutive quarter with over $1 billion in FCF. In addition to higher gold prices, Newmont's cost-cutting initiatives are also boosting its margins and cash flows.
NYSE: NEM
Key Data Points
Just days ago, analyst Fahad Tariq from Jefferies gave Newmont stock a price target of $120 per share. Earlier in December, analyst Daniel Major from UBS raised the gold stock's price objective from $105.5 per share to $125 a share. Both analysts are bullish about gold and expect gold miners to generate larger margins and cash flows amid strong demand and higher gold prices.
Is Newmont the best gold stock to own?
Shares of Newmont have surged 160% in 2025, as of this writing. While that may discourage investors from buying the stock now, Newmont's premium valuation is backed by record cash flows.
Newmont is, in fact, one of the best gold stocks out there, boasting massive gold reserves, steady production, and declining costs. Newmont is also flush with cash and fortifying its balance sheet, having divested assets worth nearly $2.6 billion in 2025 and repaying nearly $3.4 billion in debt this year. The gold stock also pays a dividend and repurchases shares regularly, further reflecting management's confidence in the company's future success.
