Featured Stock for Investors: Rio Tinto Plc (NYSE:RIO)

Sean Reid
February 9, 2018

The company has a market capitalization of $100,550.00, a P/E ratio of 16.23 and a beta of 1.01.

Rio Tinto Plc (NYSE:RIO) now has a Weekly Volatility of 3.23% percent while its Monthly Volatility is at 1.70% percent.

For the current Fiscal Quarter, 6 analysts on average are expecting earnings of $1.07 per share. Future earnings predictions are perhaps the most essential input when trying to value a company.

Watching the trading indicators on shares of Rio Tinto plc (RIO1.DE), we can see that the twenty one day Wilder Moving Average is presently above the 50 day Simple Moving Average.

The shares were flat in early trading.

Analysts' ultimate objective when projecting revenue is to determine the appropriate value for a stock.

It had forecast capital expenditure of about $5.5-billion this year and a rise to $6-billion in 2019 and 2020.

The miner also reduced net debt to US$3.8 billion, and made US$2.7 billion in divestments past year, including the sale of most of its Australian coal assets to China-backed Yancoal. JPMorgan Chase & Co. set a GBX 4,200 ($58.89) price target on Rio Tinto and gave the stock a "neutral" rating in a report on Monday. Price Target plays a critical role when it comes to the analysis of a Stock. In a research note shared with investors and clients on 7 February, Rio Tinto (LON:RIO) shares have had their Sell Rating kept by research professionals at Liberum Capital.

Moving average is significant analytical tool used to discover current price trends and the possibility for a change in an established trend.

Profitability analysis greatly helps in making investment decision.

According to Finviz reported data, The SMA20 of the stock is at -1.46 percent, SMA50 is 5.36 percent, while SMA200 is 18.07 percent. However, the company sales do not necessarily expose the entire picture, as it might be unprofitable with a low P/S ratio. As of writing, Rio Tinto plc's RSI stands at 47.45. On Thursday, July 7 the stock rating was maintained by Jefferies with "Buy". Moreover, Motley Fool Asset Management Llc has 1.18% invested in the company for 661,100 shares.

Several analysts have released their opinion on Rio Tinto plc (NYSE:RIO), with 5 analysts believing it is a strong buy.

The goal of a stock price analysis is to study the behaviour of stock prices. Whereas 4 of them predict the stock is a hold.

All eyes will now be on BHP Billiton Limited's (ASX: BHP) half year result on February 20, as I suspect the world's biggest miner will deliver more surprises than Rio Tinto in terms of capital returns. The stock gained 1.19 percent over the past month and rose 4.27 percent year-to-date.

That's a pretty tempting yield for a company with good earnings growth prospects and I think the stock still looks good value despite its 20% rise over the past 12-months versus the 4.5% gain by the S&P/ASX 200 (Index:^AXJO) (ASX:XJO).

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