10 Best Gold Stocks to Invest in for Portfolio Diversification

1. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 63

Newmont Corporation (NYSE:NEM) is a basic materials company that engages in the production and exploration of gold. While the stock was up by 16% in 2024, it’s already up by 34% for the year. The rally comes on the company cementing its position as one of the best gold stocks to invest in as it continues to take advantage of the soaring gold prices. Given that gold represents 80% of the company’s revenue, it is well-positioned to benefit from surging prices.

In the third quarter, Newmont Corporation (NYSE:NEM) achieved $4.6 billion in revenue, representing an 85% year-over-year increase. The increase came from the company selling gold at an average price of about $2600 an ounce. Fast forward, gold prices have powered through the $2,800 an ounce level, affirming how the company’s revenue is poised to receive a significant boost.

In addition to taking advantage of rising gold prices, Newmont Corporation (NYSE:NEM) has also embarked on a restructuring drive to strengthen its long-term prospects. It is executing a divestiture strategy focusing on the sale of non-core assets, such as the Cripple Creek & Victor operation in Colorado and the Musselwhite mine in Ontario, Canada. The sale is part of an effort that seeks to bolster margins. Additionally, the company has initiated a $2 billion share repurchase program as part of an effort to return value to shareholders.

While we acknowledge the potential of Newmont Corporation (NYSE:NEM), our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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