Newmont stock just took a hit, dropping about 5% to around US$108 after posting Q3 2026 results, even as the miner reported record adjusted earnings per share of roughly US$2.20 and strong free cash flow of US$1.9b for the quarter. The short term read is simple: traders sold first.
The longer view looks different. Over the last twelve months, Newmont has generated earnings per share above US$8 and a net margin near the mid 30s, while the current P/E of about 12 sits below the broader precious metals peer group. That gap between quick reaction and multi year story is what matters next for investors.
Love Newmont’s strong EPS and free cash flow but questioning whether this is the best risk reward in large cap miners right now? Compare it with a curated list of producers that pair resilient balance sheets with healthy cash generation in our list of solid balance sheet and fundamentals stocks (25 results).
Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs. Q3 2025): US$6,363m vs. US$5,524m (up about 15%)
- Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$2,475m vs. US$1,832m (up about 35%)
- Basic EPS (Q3 2026 vs. Q3 2025): US$2.36 vs. US$1.67 (up about 41%)
- Gold Production (Q3 2026 vs. Q3 2025): 40.50 troy ounces vs. 44.20 troy ounces (down about 8%)
Earnings get the headlines, but cash flows usually drive what long term holders are really paying for with Newmont. When you focus on the cash being generated rather than just reported profit, the stock could be a modest 10% undervalued.
Newmont’s Buyback And Project Playbook Under Pressure Test
The bullish story says Newmont can keep shrinking the share count while pushing a deep project bench toward lower cost production.
"Bullish analysts expect Newmont to keep using its capital allocation framework, strong free cash flow, and productivity programs to compound per share value as it works through the current project pipeline."
Q3 puts some hard markers down. Record adjusted EPS, US$1.9b free cash flow and a net cash pile above US$3b show the cash engine is working. Dividend payments and ongoing buybacks confirm the capital framework is active. On projects, Cadia PC2‑3 and Tanami Expansion 2 both moved closer to completion, which supports the idea that execution, not just aspiration, is driving the pipeline so far.
The price and this Narrative do not agree. → Uncover what this Narrative says Newmont is actually worth.
Evaluating Newmont Bear Fears On Margin Squeeze
The harsher view says Newmont is sliding into structurally higher costs as better ore runs down.
"Compounded by ongoing depletion of economically viable reserves, Newmont will be forced to develop more lower-grade, higher-cost deposits, leading to a structural rise in all-in sustaining costs, which compresses operating and net margins even in periods of stable or rising metal prices."
This quarter cuts against that worry, but does not kill it. By-product all-in sustaining cost, labelled AISC, improved to US$1,454/oz and full-year guidance tightened to US$1,520/oz after earlier US$1,590. That is cost relief, yet the share price still fell about 5% on the day, which shows investors remain wary about how long this AISC trend holds once Red Chris and other projects absorb heavy capital.
Hunt For Mispriced Cash Generators
Newmont just showed how a strong quarter and active capital returns can still meet a skeptical share price. The real opportunity is spotting stocks that could be undervalued before that skepticism fades.
- Company 1 - 40% below our estimate - uses government-backed trade-in subsidies and eco-conscious demand to channel more used devices into recommerce.
- Company 2 - 32% below our estimate - turns a packed super app into deeper credit, payments and commerce engagement for regularly active clients.
- Company 3 - 34% below our estimate - converts large multiyear AI infrastructure and database contracts into heavier usage of its subscription software stack.
Those are three of them. See every one of the 27 undervalued companies on it →
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