Wall Street’s Sleeping Gold Giant Awakens With Moody’s Nod
While everyone’s chasing AI stocks, the real treasure might be hiding in plain sight. Newmont, the world’s largest gold miner and the only one in the S&P 500, just scored a Moody’s upgrade and a screaming buy from Barron’s. Still dubbed undervalued, this stock is up 94% YTD as gold chases record highs.
- Following an aggressive acquisition strategy for “tier-one assets,” the company’s debt surged to $6.4B in 2023 — but $5B has been paid down, leading to an A3 rating (low default risk).
- With EPS nearly doubling from last year,’s price trades just 13x higher — well below peers like Agnico Eagle, which enjoys an 18x price-to-earnings multiple.
The golden opportunity: Traditional miners like Newmont capture far more upside than gold ETFs thanks to operational leverage — when gold prices climb, their fixed costs stay put while profits soar. With ETFs still 17% below peak levels, JP Morgan thinks this runway looks long too, targeting $4K gold by Q2 2026. Even Trump’s surprise tariffs recently sent futures to $3.5K, creating ideal conditions for mining stocks. Still, as any prospector knows, every gold rush eventually meets its ghost town.
