Buy, Sell or Hold: Newmont Goldcorp (NGT-T) — Stock Predictions at Stockchase

Home Daily Stock Opinions and Ratings Newmont Goldcorp (NGT-T)

TSE:NGT

68.39

0.48 (0.71%) 1d

Most Anticipated Earnings: NTR-T, ONEX-T and more Canadian Companies Reporting Earnings this Week (Feb 17-21)U.S inflation hot, GDP cool, Wall Street down, TSX flat

Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Newmont Goldcorp (NGT-T) is a significant player in the gold sector, competing closely with Agnico Eagle Mines (AEM). However, the reviews highlight contrasting perspectives on its future performance. One expert suggests selling NGT in favor of AEM due to concerns over the company's production growth and the impact of a strong U.S. dollar and rising interest rates, which may lead to a pullback in gold prices. While others express confidence in NGT's management and capital allocation skills, noting it has outperformed Barrick Gold (ABX), there remains skepticism due to its heavy institutional ownership and limited interest currently in gold stocks owing to the chase for AI opportunities. Overall, NGT's stature in the industry is recognized, but it may face challenges ahead as it competes for investment attention.

Consensus

Mixed

Valuation

Fair Value

Similar

Agnico-Eagle Mines, AEM-T

SELL

Sell NGT to buy AEM?

He'd go with that strategy. He's been lightening up on gold. With a strong USD, and interest rates possibly being higher, gold may take a few steps back.

The two biggest names, NGT and ABX, have really shown miserable production growth. Underperformed the group for a number of years now. They don't have the growth assets and their size means they can't accelerate as much. AEM is the new top senior.

PAST TOP PICK

(A Top Pick Oct 11/23, Up 13%)

NGT and AEM have overtaken ABX as the monsters in the industry by market cap. Well run. Keeps his exposure in the gold sector to 5% or less. Often a good buffer in troubled times.

PAST TOP PICK

(A Top Pick Oct 11/23, Up 40%)

Still owns shares, and believes business will continue to perform. Excellent management team with good capital allocation skills. Doesn't have geographic risk that other producers have. Very good at finding gold and new assets.

DON'T BUY

Owned by the big institutions and they're out chasing AI stocks, so not much interest in gold.

DON'T BUY

Largest gold producer in the world. Global. Expects synergies from latest acquisition. Balance sheet still in good shape. Well run. A go-to, if you like gold. But look at the chart -- owning gold over the last 20 years has been a tough game.

If you want a miner, go with the copper miners, better risk/reward, part of the next ESG evolution/revolution of where the world is going.

TOP PICK

Takeover of Newcrest is huge, propelling it to be the largest in the world at what it does. Exposure to all the metals, and especially to copper with the acquisition. Operates primarily in relatively low-risk areas. Attractive opportunity for some gold exposure during uncertain times such as now. Yield is 4.14%.

(Analysts’ price target is $70.61)

BUY

The miners are very cheap. The question is what's going to happen to the commodity, because you have to make your call on it before you look at the businesses. If the price of gold goes sideways, those companies won't do much. Right now, he likes stocks better than royalties. Royalty companies are better to have once things get going. Stocks like AEM, NGT and ABX are really down, and that's a better way to play now.