Time To Buy The Dip In Newmont Stock?
Newmont (NEM) stock has fallen by 15.7% in less than a month, from $130.00 on 27th Feb, 2026 to $109.58 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, NEM stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 5.2% , with median peak return reaching 20%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
| Period | Past Median Return |
|---|---|
| 1M | 2.2% |
| 3M | 0.7% |
| 6M | -1.8% |
| 12M | 5.2% |
Historical Dip-Wise Details
NEM had 13 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 20% median peak return within 1 year of dip event
- 196 days is the median time to peak return after a dip event
- -20% median max drawdown within 1 year of dip event
| 30 Day Dip | NEM Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | NEM | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 5% | 20% | -20% | 196 | ||||
| 11112024 | -21% | 4% | 112% | 137% | -12% | 339 | ||
| 2082024 | -20% | 5% | 40% | 83% | -10% | 257 | ||
| 5252023 | -20% | 0% | 8% | 15% | -24% | 361 | ||
| 3072023 | -21% | -1% | -16% | 25% | -27% | 29 | ||
| 7182022 | -20% | -8% | -14% | 4% | -30% | 191 | ||
| 5162022 | -21% | -12% | -29% | 7% | -41% | 9 | ||
| 9072018 | -20% | 2% | 32% | 42% | -2% | 362 | ||
| 10042016 | -21% | -1% | 12% | 16% | -10% | 338 | ||
| 7172015 | -23% | 2% | 102% | 102% | -25% | 363 | ||
| 10312014 | -23% | 0% | 5% | 49% | -17% | 196 | ||
| 10082013 | -20% | 0% | -9% | 8% | -20% | 14 | ||
| 5032013 | -20% | 5% | -22% | 6% | -35% | 34 | ||
| 4042012 | -22% | 3% | -15% | 20% | -19% | 163 | ||
Newmont Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 21.3% | Pass |
| Revenue Growth (3-Yr Avg) | 26.2% | Pass |
| Operating Cash Flow Margin (LTM) | 45.6% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 50.5 | |
| => Cash To Interest Expense Ratio | 36.0 |
Not sure if you can take a call on NEM stock? Consider portfolio approach
The Best Investors Think In Portfolios
Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.