Newmont Mining Corpo

NEM
Real-time BATS EXCHANGE - 08/22 10:08:30 am
38.655USD
+0.34%

The stock is approaching a major resistance level

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David Meurisse
Contributor / Partner

Strategy published on : 08/07/2019 | 11:31

long trade
Live

Entry price : 39.2$
Target : 49.9$
Stop-loss : 34.7$
Potential : 27.3%

Newmont Mining Corporation shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Investors have an opportunity to buy the stock and target the $ 49.9.

Summary

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 60% by 2021.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● The tendency within the weekly time frame is positive above the technical support level at 34.38 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 39.42.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The company's enterprise value to sales, at 3.54 times its current sales, is high.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 39.15 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2019
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