{"id":58002,"date":"2026-01-24T11:08:24","date_gmt":"2026-01-24T15:08:24","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/gold-rally-pushes-newmont-into-overbought-territory-while-berkshires-new-ceo-eyes-kraft-heinz-exit\/58002\/"},"modified":"2026-01-24T11:08:24","modified_gmt":"2026-01-24T15:08:24","slug":"gold-rally-pushes-newmont-into-overbought-territory-while-berkshires-new-ceo-eyes-kraft-heinz-exit","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-rally-pushes-newmont-into-overbought-territory-while-berkshires-new-ceo-eyes-kraft-heinz-exit\/58002\/","title":{"rendered":"Gold Rally Pushes Newmont into Overbought Territory While Berkshire&#8217;s New CEO Eyes Kraft Heinz Exit"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Newmont<\/strong> (<a href=\"\/stock\/NEM\">NEM<\/a>) has become one of Wall Street&#39;s most overbought stocks, with its shares recently hitting a 52-week high of <strong>$123.04<\/strong> and a 14-day Relative Strength Index (RSI) of 77, fueled by a significant <em><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">gold<\/a> rally<\/em> and strong earnings performance.<\/li>\n<li><strong>Berkshire Hathaway&#39;s<\/strong> (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>, <a href=\"\/stock\/BRK.B\">BRK.B<\/a>) new CEO, <strong>Greg Abel<\/strong>, has swiftly signaled a potential divestment of the conglomerate&#39;s long-held, troubled <strong>325 million<\/strong> share stake in <strong>Kraft Heinz<\/strong> (<a href=\"\/stock\/KHC\">KHC<\/a>), marking a significant strategic shift in the company&#39;s investment portfolio.<\/li>\n<li>The <em>gold rally<\/em> has propelled <strong>Newmont&#39;s<\/strong> market capitalization to approximately <strong>$132.8 billion<\/strong>, but its <em>overbought status<\/em> suggests an elevated short-term risk of a pullback despite generally positive analyst ratings.<\/li>\n<li>Abel&#39;s decisive action regarding <strong>Kraft Heinz<\/strong> comes amidst recent analyst downgrades for the food giant and its stock hitting a new 12-month low, indicating a potential move by <strong>Berkshire<\/strong> away from underperforming assets.<\/li>\n<\/ul>\n<h2>Newmont&#39;s Golden Surge and Overbought Concerns<\/h2>\n<p><strong>Newmont Corporation<\/strong> (<a href=\"\/stock\/NEM\">NEM<\/a>), the global gold mining giant, has surged to the top of Wall Street&#39;s most overbought stocks list, driven by a robust <em>gold rally<\/em>. The company&#39;s shares recently reached a 52-week high of <strong>$123.04<\/strong> on January 23, 2026, closing at <strong>$121.67<\/strong>, reflecting a 2.3% increase. This impressive performance has pushed its market capitalization to approximately <strong>$132.8 billion<\/strong>.<\/p>\n<p>However, the rapid ascent has triggered <em>overbought conditions<\/em>, with <strong>Newmont&#39;s<\/strong> 14-day Relative Strength Index (RSI) registering at 77. While analysts maintain a consensus &quot;Buy&quot; rating for <strong>NEM<\/strong>, with an average target price around <strong>$99.49<\/strong>, some firms like Goldman Sachs have raised their targets to <strong>$123.90<\/strong>, and UBS to <strong>$125.00<\/strong>. Despite strong fundamentals, including recent quarterly earnings per share of <strong>$1.71<\/strong> (beating estimates of <strong>$1.27<\/strong>) and revenue of <strong>$5.52 billion<\/strong> (up 20% year-over-year), the <em>overbought technical indicators<\/em> suggest an elevated short-term risk of a pullback. The company has significantly benefited from record-high gold prices, with the average realized gold price reaching <strong>$3,320 per ounce<\/strong> in a recent quarter, a <strong>$973 per ounce<\/strong> increase year-over-year.<\/p>\n<h2>Berkshire&#39;s New Era: Abel Eyes Kraft Heinz Exit<\/h2>\n<p>In a significant move signaling a potential shift in <strong>Berkshire Hathaway&#39;s<\/strong> (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>, <a href=\"\/stock\/BRK.B\">BRK.B<\/a>) investment strategy, new CEO <strong>Greg Abel<\/strong> has indicated that the conglomerate is preparing to divest its substantial stake in <strong>Kraft Heinz<\/strong> (<a href=\"\/stock\/KHC\">KHC<\/a>). <strong>Berkshire Hathaway<\/strong> holds approximately <strong>325 million<\/strong> shares of the food and beverage giant, an investment that has been described as &quot;troubled&quot; due to its underperformance.<\/p>\n<p>Abel&#39;s swift signal comes as <strong>Kraft Heinz<\/strong> faces increasing pressure, with its stock recently hitting a new 12-month low following multiple analyst downgrades. Notably, Exane BNP Paribas recently cut its rating on <strong>KHC<\/strong> to &quot;Strong Sell&quot; and &quot;Underperform.&quot; Despite a recent uptick in <strong>Kraft Heinz<\/strong> shares driven by <em>short-term buying<\/em> and <em>heavy call-option activity<\/em>, the prospect of <strong>Berkshire Hathaway&#39;s<\/strong> divestment remains a &quot;substantial negative catalyst.&quot; This potential exit by <strong>Berkshire Hathaway<\/strong> under its new leadership suggests a strategic re-evaluation of its portfolio, possibly moving away from long-standing, underperforming assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Newmont (NEM) has become one of Wall Street&#39;s most overbought stocks, with its shares recently hitting a 52-week 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