We recently published a list of 7 Best Metal Stocks to Buy According to Analysts. In this article, we are going to take a look at where Newmont Corporation (NYSE:NEM) stands against other best metal stocks to buy according to analysts.
The metals industry, which supplies vital materials for manufacturing, renewable energy, and construction, is a major contributor to the expansion of the world economy. This market has grown remarkably in the last several years. The Business Research Company projects that the worldwide metals market will increase by 5.9%, from $4,392.33 billion in 2024 to $4,651.03 billion in 2025. Growing demand for industrial and precious metals, particularly in the construction, automotive, and renewable energy industries, is driving this growth.
Since copper is still one of the most sought-after metals, the growing demand for the metal is a major factor in this development. The copper market is projected to increase by 7.8% during the period 2024-2025, reaching $190.72 billion, according to The Business Research Company. This increase is mostly attributable to the growth of infrastructure worldwide and the extensive use of copper in electrification projects.
At the same time, there is a high demand for metals like copper, aluminum, and steel, especially from the expanding construction sector. According to the U.S. Census Bureau, the value of monthly construction activities in the United States increased by 4.3% on a YoY basis in December 2024. Thus, the global acceleration of infrastructure projects is anticipated to support the metals market for the foreseeable future due to this increasing demand.
Along with industrial metals, precious metals have done noticeably better than the overall market, driven by investor demand for safe-haven assets and inflationary fears. For example, gold ETFs had their greatest gain since 2010 in 2024, rising a whopping 26%. It is anticipated that this trend will continue into 2025 if inflationary pressures continue to drive demand for gold as a protective investment. Similarly, as of February 26, 2025, silver futures experienced a 40.34% year-over-year rise while gold futures produced an impressive 43.64% return, as reported by S&P Global. These figures highlight the rising demand for gold and silver as investments against an unstable economic landscape.
Simultaneously, the metals sector is undergoing a surge in sustainability efforts and technological breakthroughs. Metal production is being revolutionized by innovations such as generative AI in additive manufacturing, which is making it more sustainable and efficient. On the other hand, the global market for recycled scrap metal is expected to rise at a robust 6.4% annual growth rate from $70.5 billion in 2024 to $75.5 billion in 2025. By 2035, the recycling industry is predicted to account for 72.5% of the market value as environmental restrictions and sustainability drive companies to use recycled metals, especially ferrous metals.
Beyond technological innovations, metals like lithium, copper, and zinc are at the center of industry transformation as a result of the move toward cleaner energy and electrification. Lithium is becoming more affordable and widely available because of new extraction techniques, which are enhancing its use in energy storage applications. For instance, the lithium market is expected to expand by 16.3%, from $7.75 billion in 2024 to $9.01 billion in 2025. Meanwhile, as reported by Zinc.org, the demand for zinc in solar power is predicted to reach 568,000 tons by 2030, demonstrating the rising significance of zinc in renewable energy.
Therefore, the overall metal market is experiencing strong demand, technological breakthroughs, and increased focus on sustainability and clean energy initiatives. Therefore, experts are enticed to pick the best metal stocks with the potential for rapid growth to capitalize on bright future prospects of the market.
Our Methodology
To curate our list of the 7 Best Metal Stocks to Buy According to Analysts, we picked the top companies having a substantial exposure to extraction, processing, and manufacturing of metals. Furthermore, we made sure that we pick companies with strong market capitalization. Finally, we ranked the stocks based on the upside potential predicted by a healthy number of analysts, as of writing this article.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A gold mine entry with a conveyor belt transporting minerals from the depths of a shaft.
Newmont Corporation (NYSE:NEM)
Average Upside Potential: 19.42%
Number of Hedge Fund Holders: 69
Newmont Corporation (NYSE:NEM), the largest gold miner in the world, has developed a diverse portfolio that includes holdings in Australia, Africa, South America, and North America. The company has assets in the United States, Canada, Mexico, and the rest of the world. In addition to its gold activities, it explores copper, silver, zinc, and lead. By combining Newcrest’s assets, Newmont has made great progress in 2024, streamlining its operations and freeing up resources to fortify its Tier 1 gold and copper holdings. Additionally, the company sold off non-core assets in order to concentrate on its most important assets during the year.
The financial performance of Newmont Corporation (NYSE:NEM) improved amid this change in strategy. Strong production levels and rising gold prices helped the company achieve a healthy $3.4 billion in net profits for the year that ended December 31, 2024. In addition to reaching a total attributable production of 6.8 million gold ounces and 1.9 million gold-equivalent ounces (GEOs) from base metals, the company’s adjusted EBITDA increased to $8.7 billion. With $1.4 billion less in debt and $3.6 billion in cash at the end of the year, Newmont’s financial health has improved a great deal.
With an eye toward the future, Newmont Corporation (NYSE:NEM) keeps refining its holdings, concentrating on its most valuable and important properties. The company plans to sell six non-core assets in 2025, with a maximum anticipated profit of $4.3 billion, which will include $2.5 billion in cash by the middle of the year. A dedication to compensating shareholders is combined with this streamlined approach. Newmont reinforced its dedication to shareholder returns in 2024 by repurchasing $1.2 billion worth of shares and paying out $1.1 billion in dividends.
Newmont Corporation (NYSE:NEM) predicts 5.9 million ounces of gold will be produced in 2025, with an estimated total cost of $1,630 per ounce. As its base metal prospects have expanded, the company’s copper reserves have increased to surpass 13.5 million tons. With $3.1 billion set aside for sustaining and development capital, Newmont is concentrating on increasing production efficiency and prolonging mine life in order to set itself up for long-term success. The company continues to lead the mining industry and is well-positioned for future success as it takes advantage of rising base metal prospects and high gold prices.
Overall, NEM ranks 7th on our list of best metal stocks to buy according to analysts. While we acknowledge the potential of NEM as an investment, 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.
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Disclosure: None. This article is originally published at Insider Monkey.
