In this article, we will look at 5 best stocks to buy to protect against inflation in 2022 and beyond. If you want to read about sectors that have proven to be resilient to inflation in the past and how inflation is progressing in 2022, you can go to 10 Best Stocks to Buy to Protect Against Inflation in 2022 and Beyond.
5. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 53
Newmont Corporation (NYSE:NEM) engages in the production and exploration of gold. The company also explores copper, silver, zinc, and lead. The company has mining properties and ownership interests in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.
In the first quarter of 2022, as announced on April 22, Newmont Corporation (NYSE:NEM) reported gold production of 1.34 million ounces, down 8% year over year, but also reported that its average realized gold price increased 8% year over year to $1,892 per ounce, from $1,751 per ounce in 2021. Newmont Corporation (NYSE:NEM) also guided to meet its production targets for the fiscal year 2022 and forecasts maintaining gold production of 6.2 million ounces for 2022. Newmont Corporation (NYSE:NEM) is one of the largest gold miners in the world by ounces of gold produced, and with gold being a relatively reliable investment in times of high inflation, gold stocks like Newmont Corporation (NYSE:NEM) present an attractive entry point for investors looking to shelter from inflation.
On June 16, Canaccord analyst Carey MacRury lowered his price target on Newmont Corporation (NYSE:NEM) to $80 from $87 but maintained a Hold rating on the shares.
At the close of Q1 2022, 53 hedge funds were long Newmont Corporation (NYSE:NEM) with stakes worth $3.52 billion. This is compared to 45 positions in the previous quarter with stakes worth $1.39 billion. the hedge fund sentiment for the stock is positive.
In the first quarter of 2022, GQG Partners raised its Q4 2021 stakes in Newmont Corporation (NYSE:NEM) by 183%, bringing them to $2.54 billion, and making GQG Partners the dominating shareholder in the company.
Here is what First Eagle Investment Management said about Newmont Corporation (NYSE:NEM) in its third-quarter 2021 investor letter:
“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
