Newmont Corporation Shines as Top Undervalued Long-Term Stock for Hedge Funds

Newmont Corporation (NYSE:NEM), a prominent gold and precious metals miner, has been identified as one of the most undervalued long-term stocks to buy according to hedge funds. In the second quarter of 2025, the company delivered strong operational and financial results, producing around 1.5 million attributable gold ounces and generating quarterly free cash flow of $1.7 billion, a 42% increase from the prior quarter.

Newmont's disciplined execution and the strength of its portfolio have been key drivers of its performance. The company also expects to receive over $3 billion in after-tax cash proceeds from its divestment program this year, including $2.5 billion from divested assets and $470 million from the sale of equity shares in Greatland Resources and Discovery Silver. This influx of cash will further strengthen Newmont's already healthy and flexible investment-grade balance sheet, which closed the quarter with $6.2 billion in cash and $10.2 billion in total liquidity.

ClearBridge Investments, an investment management firm, has added Newmont as a new position in its portfolio, citing the company's ability to generate free cash flows that have tracked gold prices higher – a fundamental tailwind that has not yet been fully reflected in Newmont's current valuation. The firm believes this, along with Newmont's strategic plan to return capital to shareholders and pay down debt, makes the company an attractive long-term investment opportunity.