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Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images SOPA Images/LightRocket via Getty Images Newmont (NEM) stock may be a strong candidate to capitalize on current trends. Why? Because it offers strong margins, a low-debt capital structure, and strong momentum. Here are some key statistics. Revenue Growth: Newmont experienced a revenue growth of 26.6% LTM and an average of 23.9% over the last 3 years. Long-Term Profitability: Approximately 32.6% operating cash flow margin and an average operating margin of 23.9% over the last 3 years. Strong Momentum: Currently positioned in the top 10 percentile of stocks regarding “trend strength” – our proprietary momentum measurement. Room To Run: Even with its momentum, NEM stock is trading 20% below its 52-week high. While revenue growth contributes positively, this selection is primarily focused on leveraging momentum with quality – which we assess through margins (indicative of pricing power / robust business model) and capital structure (not excessively debt-laden). As a brief background, Newmont is involved in gold production and exploration, and also explores copper, silver, zinc, and lead, boasting substantial proven gold reserves along with extensive land assets. Comparison with S&P500 Median *LTM: Last Twelve Months Do these figures reveal the complete picture? Read Buy or Sell NEM Stock to determine if Newmont still possesses an advantage that stands firm beneath the surface. MORE FOR YOU If you are looking for potential gains with less volatility than holding a single stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a mix of S&P 500, Russell, and S&P midcap index, achieving returns over 105% since its launch. Effective risk management is crucial – consider what long-term portfolio performance could look like if you allocate 10% to commodities, 10% to gold, and 2% to crypto, alongside HQ’s performance metrics. Stocks Like These Can Outperform. Here Is Data This is how we determine our selection: We look at stocks with a market cap of over $2 Billion, strong operating margins and cash flow from operations margins, no major revenue declines in the past 5 years, a stable capital structure, and favorable momentum according to our proprietary metric. Below are statistics for stocks that underwent this selection strategy between 12/31/2016 and 6/30/2025. Average 12-month forward returns of nearly 15% 12-month win rate (percentage of selections that yield positive returns) at about 60% But Consider The Risk Nevertheless, NEM is not protected from significant sell-offs. It dropped 56% during the Dot-Com crash, 61% during the Global Financial Crisis, and 58% due to the Inflation Shock. Even the less severe downturns — such as in 2018 and the Covid pandemic — resulted in approximately 25-29% losses. Strong fundamentals are important, but when volatility strikes, substantial declines can occur regardless. However, the risk does not solely stem from large market downturns. Stocks can decline even when market conditions are favorable - consider events such as earnings releases, business announcements, and changes in outlook. Read NEM Dip Buyer Analyses to review how the stock has bounced back from significant drops previously. The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has consistently outperformed its benchmark, which includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What contributes to this? Collectively, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; offering a smoother investment journey, as demonstrated in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
