The price of gold has been rising fast this past year, up 41%, and is currently flirting with an all-time high. The jump in price comes as investors anticipate a resumption of rate cutting by the Federal Reserve.
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The Fed’s FOMC will be meeting this week, and traders see a near-90% chance of a 0.25% cut, with a 10% chance of a half-percent cut. Looking toward the end of the year, most Fed watchers believe that the central bank will implement additional rate cuts at the October and December meetings.
The prospect of lower interest rates is seen as beneficial for stocks – but it is also boosting gold. The investment office at UBS explains why in a recent note, stating: “Gold’s appeal as a source of diversification may increase amid higher government debts, persistent inflation, geopolitical risks, and the eagerness of many ex-G10 central banks to raise their longer-term holdings of the precious metal. Aside from potential support from geopolitical uncertainty, we expect gold to benefit from falling yields. Central bank buying is also expected to remain strong, in our view. A recent World Gold Council central bank survey showed that almost all respondents expect to either increase or keep their reserves stable. Overall, we now forecast global gold demand this year will rise by 3% to 4,760mt, the highest level since 2011.”
With gold so expensive, but also attractive, investors are naturally going to look for other ways to cash in – and what could be better than buying a gold mine? That’s the logic behind investing in mining companies, especially the major gold producers.
With a gold rush getting underway, Wall Street’s analysts are pointing out gold stocks to ride this wave. We used the TipRanks database to take a closer look at two of them.
Agnico Eagle Mines (AEM)
We’ll start with a giant of the mining industry. Agnico Eagle is the largest mining company in Canada – a country known for its particularly large mining sector – and is also a perennial member of the world’s top three gold miners by production output. Agnico has active precious metal mining operations in Canada, Mexico, Australia, and Finland, backed up by a high-quality exploration pipeline. The company has been in operation since 1957 and boasts a market cap of $77 billion.
Agnico’s production numbers, especially in gold, are impressive. In 2024, the company recorded total gold production of 3,485,336 ounces at a total cash cost of $903 per ounce. That production cost is important to know; the price of gold last year never dipped below $1,800 and finished the year at $2,500. The company has a strong focus on its Canadian base, with 85% of its gold production coming from its home country.
Looking ahead, Agnico is predicting gold production for this year in the range of 3.3 million to 3.5 million ounces and expects total cash costs between $915 and $965 per ounce of gold. The company’s gold mineral reserves, 87% of which are in Canada, include 54.3 million proven and probable ounces of gold, along with 43 million ounces listed as measured and indicated gold resources. The company has a stated goal of maintaining its gold reserves at a level 10x that of annual gold production. Overall, the company’s strategy is built on sustaining high-quality, low-risk assets to ensure a return for its shareholders.
In the second quarter of this year, the last period reported, Agnico’s total mining revenues came to $2.82 billion, a total that represented a year-over-year increase of almost 36% and beat the forecast by $120 million. This miner’s bottom line came to $1.94 per share in non-GAAP measures, up from $1.07 in the prior-year second quarter and coming in 14 cents per share better than anticipated. The company reported a record-level free cash flow during 2Q25 of $1.3 billion.
We can note here that AEM shares have dramatically outperformed the larger markets this year, gaining 98% year-to-date.
This high-end gold mining company caught the attention of Bank of America’s 5-star analyst Lawson Winder. Winder is impressed by Agnico, noting the company’s combination of strong performance and strong positioning. He writes in his recent coverage, “Our 2025 top North American precious metals pick remains Agnico Eagle Mines (AEM). We like it for its leading track-record on meeting or beating guidance and executing projects, suite of attractive growth projects, significant exploration upside potential within its portfolio, and asset location in top jurisdictions (primarily Canada, Australia, and Finland).”
Winder quantifies his stance on Agnico with a Buy rating and a $209 price target that suggests a one-year upside potential of 36%. (To watch Winder’s track record, click here)
The Street is bullish on AEM, too, giving the stock a Strong Buy consensus rating based on 9 unanimously positive reviews. The shares are trading for $153.25, and the gains have pushed them close to the average price target of $157.21. With this in mind, keep an eye out for either price target hikes or rating downgrades shortly. (See AEM stock forecast)
Newmont Corporation (NEM)
Next on our list is Newmont, the world’s leading gold mining company. By both market cap and total production, Newmont ranks first among its peers. The company’s current market cap valuation stands at $87 billion, and it generated 6.8 million attributable gold ounces last year. While Newmont’s focus is on gold, the company is also an important contributor to global production in other metals, including silver, copper, lead, and zinc.
Like Agnico above, Newmont is a North American company. It was founded in 1921 and is currently based in the state of Colorado. Newmont’s mining operations are spread across both North and South America, and the company has important mining and exploration projects in Australia and the African nation of Ghana.
In February of last year, Newmont announced that it would be divesting itself of non-core assets, and that divestiture program was completed in April of this year. The company’s current mining assets represent a streamlined set of core operations.
Newmont’s current operations include the Canadian Brucejack mine, known as one of the world’s highest-grade gold mines, producing both gold and silver through underground operations; the Australian Cadia mine, which produced 597,000 ounces of gold last year and is known as one of Australia’s largest and lowest-cost gold mines; and the Ahafo mine, in Ghana, which is that country’s largest gold mine and has produced 8 million ounces of gold since 2006. These assets are supplemented by operations in the storied mining territories of Nevada and Mexico.
The mining projects generate considerable revenue. In 2Q25, the company reported a topline of $5.32 billion, $400 million more than expected and up 21% from 2Q24. At the bottom line, Newmont’s non-GAAP EPS of $1.43 was 27 cents per share better than had been forecast. The company’s 2Q25 free cash flow was an all-time quarterly record of $1.7 billion, and Newmont finished the quarter with $6.2 billion in cash – as part of its $10.2 billion in total liquidity.
Like Agnico above, Newmont has outperformed the markets by a wide margin this year. NEM shares show a current year-to-date gain of 116%.
RBC’s Josh Wolfson has been covering Newmont, and he is impressed by the company’s ability to streamline its operations and focus on improved output and cash flow. The analyst, who holds a 5-star rating from TipRanks, says of this miner, “Newmont is in the early stages of its operational turnaround and has been delivering upon a clearly-articulated plan. In early 2025, NEM outlined a plan to execute upon its targets, divest non-core assets, generate free cash flow, and return excess capital to shareholders primarily via share repurchases. In our view, the company has been progressing this plan favourably over 1H, largely supported by the completion of its divestiture plans and above-target operating execution… We believe NEM is well-positioned to achieve its targets, generate high FCF, and return excess capital to shareholders, where shareholders are well-positioned to capture this upside in a rising gold price environment.”
Wolfson’s comments back up his Outperform (i.e., Buy) rating here, and his $95 price target implies that NEM will gain 20% by this time next year. (To watch Wolfson’s track record, click here)
There are 15 recent analyst reviews of this gold mining stock, and these split 10 to 5 in favor of Buy over Hold for a Moderate Buy consensus rating. The shares have a current selling price of $79.25, and their $81.23 average target price suggests they are currently fully valued. (See NEM stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.