Gold prices have surged by 41% over the past year, reaching unprecedented heights. This upward trend is being fueled by investor expectations that the Federal Reserve will soon resume interest rate cuts.
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The FOMC’s next meeting is this week, with traders predicting a nearly 90% chance of a 0.25% rate cut, while the odds of a larger half-point cut sit at 10%. As the year draws to a close, many Fed observers anticipate further cuts in October and December.
While a low interest rate environment is generally favorable for stocks, gold is also on the rise. UBS mentioned in a recent memo that the allure of gold as a diversification asset might grow, especially amidst government debt, ongoing inflation, geopolitical tensions, and enthusiasm from EX-G10 central banks, which are increasing their long-term holdings of precious metals. A survey indicated that nearly all central banks aim to maintain or stabilize their reserves.
But, with gold prices reaching lofty levels, investors are likely looking for other avenues to obtain cash. One logical route? Investing in gold mines. This thinking is driving interest in mining companies, particularly major gold producers.
As this gold rush gains momentum, Wall Street analysts are pointing to gold stocks as a viable investment. Using the Tipranks database, I dove into two significant players in this space.
Agnico Eagle Mines (AEM)
First up is Agnico Eagle, the largest mining company in Canada. Known for its substantial presence in the mining sector, Agnico consistently ranks among the world’s top three gold producers based on output. The firm has active operations in Canada, Mexico, Australia, and Finland, supported by a solid exploration pipeline and has been in business since 1957, boasting a market cap of $77 billion.
Agnico’s gold production is notably impressive. In 2024, the company produced 3,485,336 ounces of gold at a total cash expense of $903 per ounce. It’s worth considering that gold prices didn’t dip below $1,800 last year, wrapping up at $2,500. Most of Agnico’s production—around 85%—comes from Canada.
Looking ahead, Agnico expects gold production between 3.3 million and 3.5 million ounces this year, with cash costs between $915 and $965 per ounce. The firm’s gold reserves in Canada include 54.3 million ounces, alongside 43 million ounces classified as measured and indicated resources. Agnico aims to maintain reserves at ten times their annual output, focusing on quality and low-risk assets for shareholder benefit.
In the second quarter of this year, Agnico’s mining revenues hit $2.82 billion, a 36% increase from the previous year and right on target with their forecast of $120 million. The miner reported earnings of $1.94 per share compared to $1.07 last year, exceeding expectations. Remarkably, the company achieved free cash flow of $1.3 billion in Q2.
This year, AEM shares have outperformed the broader market, climbing by 98% since January.
Bank of America’s five-star analyst, Lawson Winder, is closely monitoring Agnico and commended the combination of the company’s strong performance and positioning. He has a buy rating on the stock with a price target of $209, indicating significant upside potential.
Market sentiment appears to favor AEM as well, with a strong buy consensus based on nine positive reviews. Currently trading at $153.25, it is nearing its average target price of $157.21. It’s a good idea to watch for possible price target increases or valuation adjustments.
Newmont Corporation (NEM)
Next, we have Newmont, a titan in the gold mining sector. Ranking first in market capitalization and production, the company is valued at $87 billion and generated 6.8 million ounces of gold last year. While primarily focused on gold, Newmont also produces significant quantities of silver, copper, lead, and zinc.
Founded in 1921 and based in Colorado, Newmont operates across North and South America and has significant mining projects in Australia and Ghana.
Back in February, Newmont revealed plans to divest from non-core assets, completing this process by April. The result is a more streamlined operational setup concentrated on core assets.
Newmont’s operations include the Canadian Bluesjack Mine, renowned for producing gold and silver, and Australia’s Cadia Mine, recognized as one of the largest and lowest-cost gold mines. Additionally, Ghana’s Ahafo mine has produced 8 million ounces since 2006, complemented by operations in Nevada and Mexico.
In Q2 2025, the company reported revenues of $5.32 billion, a 21% year-over-year increase, with a $400 million boost from the previous quarter. Their non-GAAP earnings per share reached $1.43—27 cents beyond expectations—while free cash flow for the quarter hit a record $1.7 billion, leaving them with $6.2 billion in cash.
Like Agnico, Newmont has also outperformed the market this year, with NEM shares soaring by 116% since the start of the year.
RBC analyst Josh Wolfson praised Newmont for its improved operations and cash flow focus. Holding a five-star rating, he considers the miner well-positioned to meet its goals, achieve high free cash flow, and return capital to shareholders. He maintains a buy rating with a price target of $95, suggesting a 20% upside potential over the next year.
Analysts are generally positive on this mining stock, with 15 reviews indicating a buy consensus, split 10-5. Currently priced at $79.25, NEM is near its average price target of $81.23, suggesting it is fairly valued.
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Disclaimer: The views in this article are those of the featured analysts and are meant for informational purposes only. It’s essential to conduct your own analysis prior to making any investment decisions.
