Gold continued to build on its recent gains on Tuesday after the monthly jobs data signalled the labour market was finally starting to cool off a little (read more).
Brown’s bull case for Newmont Corporation stock
At writing, gold is only a few bucks away from hitting an all-time high. Still, Josh Brown – the Chief Executive of Ritholtz Wealth Management is convinced it’s not out of room to run just yet.
To that end, he took a position in Newmont Corporation (NYSE: NEM) today to capitalise on continued strength in bullion. On CNBC’s “Halftime Report”, he said:
I look for when technicals align with the fundamentals. I think with the giant gold miners, that’s exactly the situation we’re in. You’ve got kind of a bull market in commodities.
Nonetheless, Brown confirmed that he expects Newmont Corporation stock to be a trade and not a long-term investment for now.
Citi is bullish on Newmont Corporation as well
Brown expects Newmont Corporation to benefit as the ongoing banking crisis push investors globally to the so-called safe haven – gold. He added:
Last big secular bull market in gold took place in 2000 to 2002 in a similar situation economically. Newmont is the biggest, the highest quality name. It’s been acquiring gold miners and you have a dividend.
In February, the Denver-headquartered company reported revenue for its fourth financial quarter that handily topped Street estimates. Its adjusted EPS, though, was shy of expectations.
Also on Tuesday, Citigroup reiterated its “buy” rating on the Newmont Corporation stock. The firm’s $60 price target suggests about a 20% upside from here.
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