5 Best Stocks to Buy Before Recession Begins

4. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 56

Newmont Corporation (NYSE:NEM) is a Colorado-based company engaged in the production and exploration of gold. The company also explores for other precious metals, such as copper, silver, zinc, and lead. Gold acts as a safe haven in times of economic distress, which makes Newmont Corporation (NYSE:NEM) one of the best stocks to load up on before the next recession starts. 

On September 12, Goldman Sachs analyst Emily Chieng assumed coverage of Newmont Corporation (NYSE:NEM) with a Buy rating and a $53 price target. The stock’s latest underperformance has offered an attractive entry point for a “low risk gold producer delivering volume growth,” the analyst told investors in a research note. Similarly, on September 6, UBS analyst Cleve Rueckert upgraded Newmont Corporation (NYSE:NEM) to Buy from Neutral with a price target of $50, down from $78, citing a deep value opportunity. 

According to Insider Monkey’s data, 56 hedge funds were long Newmont Corporation (NYSE:NEM) at the end of June 2022, compared to 53 funds in the prior quarter. Rajiv Jain’s GQG Partners is the biggest position holder in the company, with approximately 35 million shares worth over $2 billion. 

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”