7 Best Zinc Stocks to Buy According to Hedge Funds

1. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 69

Newmont Corporation (NYSE:NEM) is the world’s largest gold miner with a diversified portfolio across North America, South America, Australia, and Africa. In addition to gold, the company also produces significant amounts of zinc, primarily from its Peñasquito mine in Mexico.

In the year ended 31 December 2024, Newmont Corporation (NYSE:NEM) sold 247,000 tons of zinc, which was a 144.6% increase of over 101,000 tons in 2023. This increase was primarily due to steady operations at Peñasquito after prior interruptions. The company’s adjusted EBITDA rose by 184.3% year-over-year, from $3.06 billion in 2023 to $8.7 billion in 2024, which was driven by higher gold prices and robust zinc performance. There was also an improvement in financial flexibility as operating cash flow reached $6.3 billion, with $3.6 billion in cash on hand.

Looking forward, Newmont Corporation (NYSE:NEM) expects a reduction in the output of silver, lead, and zinc in 2025, with zinc production estimated at 236,000 tons. This anticipated decline is a result of reduced mining activity in the Chile Colorado pit, along with the mine’s intended sequencing.

Moreover, Newmont Corporation (NYSE:NEM) has announced plans to divest six non-core assets to improve its portfolio. This intends for total proceeds of up to $4.3 billion, including $2.5 billion in cash predicted in the first half of 2025. The company has additionally decreased its liabilities by $1.4 billion in the last year, further refining its balance sheet.

Looking ahead, Newmont Corporation (NYSE:NEM) intends to allocate around $525 million to exploration and advanced projects in 2025. The company’s main focus will be on extending mine life and enhancing resources. Thus, the company is effectively positioned for sustainable expansion in both precious metals and base metals due to a strong asset foundation and careful capital distribution.

Overall Newmont Corporation (NYSE:NEM) ranks first on our list of the Best Zinc Stocks to Buy. While we acknowledge the potential of 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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