U.S. Markets closed
  • S&P 500

    3,298.46
    +51.87 (+1.60%)
     
  • Nasdaq

    10,913.56
    +241.26 (+2.26%)
     
  • Russell 2000

    1,474.91
    +23.09 (+1.59%)
     
  • Crude Oil

    40.04
    -0.27 (-0.67%)
     
  • Gold

    1,864.30
    -12.60 (-0.67%)
     
  • Silver

    22.99
    -0.21 (-0.91%)
     
  • EUR/USD

    1.1637
    -0.0038 (-0.3258%)
     
  • 10-Yr Bond

    0.6590
    -0.0070 (-1.05%)
     
  • Vix

    26.38
    -2.13 (-7.47%)
     
  • GBP/USD

    1.2744
    -0.0007 (-0.0586%)
     
  • BTC-USD

    10,741.65
    +6.29 (+0.06%)
     
  • CMC Crypto 200

    230.19
    +12.36 (+5.67%)
     
  • FTSE 100

    5,842.67
    +19.89 (+0.34%)
     
  • Nikkei 225

    23,204.62
    +116.82 (+0.51%)
     

Why Newmont Corp (NEM) Stock is a Compelling Investment Case

Alex Smith

First Eagle Investment Management recently released its Q2 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 14.73% for the second quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 19.36% in the same quarter. You should check out First Eagle's top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, First Eagle highlighted a few stocks and Newmont Corp (NYSE:NEM) is one of them. Newmont Corp (NYSE:NEM) is a gold mining company. Year-to-date, Newmont Corp (NYSE:NEM) stock gained 61.7% and on August 4th it had a closing price of $70.25. Here is what First Eagle said:

"Given what we view as a high-quality management team and robust balance sheet, Colorado’s Newmont is a prime example of a miner that was prepared to meet the challenges of Covid19. With rigorous protocols already in place, the company has been proactive in managing its mines to protect local communities and infrastructure while at the same time mitigating the pandemic’s impact on its business. In contrast with broad market trends that have companies cutting or suspending dividend payments, Newmont recently increased its quarterly dividend by 79%."

Richest Countries in the World by Natural Resources
Richest Countries in the World by Natural Resources

Pixabay/Public Domain

This isn’t the first time First Eagle talked about Newmont Corp (NYSE:NEM) favorably either. The investment firm has been a long time Newmont Corp (NYSE:NEM) bull. In June, we shared First Eagle’s bullish Newmont Corp (NYSE:NEM) thesis in this article.

In Q1 2020, the number of bullish hedge fund positions on Newmont Corp (NYSE:NEM)  stock increased by about 26% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Newmont's growth potential. Our calculations showed that Newmont Corp (NYSE:NEM)  isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:


Disclosure: None. This article is originally published at Insider Monkey.