In soaring more than 18% year to date (as of this writing), the price of gold has ascended to a level that even the most optimistic gold bugs hardly thought possible just a couple of years ago. Despite the price of the yellow metal rising, many investors suspect there's plenty of room for it to run higher in the coming months, motivating them to consider leading gold stocks like Newmont Corporation (NEM 1.49%).
But is Newmont stock a buy just because the price of gold is expected to rise? Let's dig in and take a closer look at this precious metals powerhouse.
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Why Newmont glitters so brightly
With a market capitalization of $135 billion, Newmont is the largest publicly traded gold stock available to investors. By operating 12 assets across four continents, Newmont has a global presence that belies that of smaller gold stocks with limited operations.
NYSE: NEM
Key Data Points
Newmont is coming off a powerful performance in 2025. In addition to generating $7.3 billion in free cash flow, Newmont fortified its financial health by paying down $3.4 billion in debt, resulting in the company ending the year with a net cash position of $2.1 billion.
With this robust amount, Newmont can advance growth projects -- like Tanami Expansion 2, Cadia Panel Caves, and Lihir Nearshore Barrier -- without weighing down its balance sheet with debt.
Is now the time to buy $1,000 of Newmont stock?
Currently, Newmont stock is trading at 12.8 times operating cash flow, a slight premium to its five-year average cash flow multiple of 11.4. Despite the steeper valuation, Newmont remains a worthwhile buy for those seeking a leading gold stock, given its strong financial health and industry leadership.
For those interested in clicking the buy button on Newmont stock, however, it's essential to ensure that buying $1,000 in Newmont stock doesn't weight their portfolios too heavily with gold exposure. Broadly speaking, a position in Newmont should be part of a larger focus on adequate portfolio diversification.
