The Nexa Resources S.A. (NEXA) shares are trading at lower $6.45 and the avg recommendation for the stock is Hold. The current analyst price target stands at $4.89.
To add more color to this target, the company’s high over the last year is $10.98 and the low is $2.57. Over the last 52 weeks, NEXA is down -41.26% while the S&P 500 is up 1.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, NEXA reported a profit of $51.37 million. Nexa Resources S.A. also saw revenues increase to $442.01 million. In addition, NEXA has free cash flow of -$151.43 million as of 03-2020 The company’s EBITDA came in at -$440.88 million which compares well with its peers.
NEXA booked profit margins of -29.70%, its Return on Equity (ROE) is -31.90%, and its Return on Assets is -12.40%. All told, it is clear that, NEXA needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. NEXA has a short ratio of 2.38 and outstanding shares of 132.44M.
NEXA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 84430.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -4.94. Nexa Resources S.A. NEXA also noted assets of $4.56 billion at the end of the last quarter. Investors should also keep an eye on sector updates as NEXA has historically followed its peers on positive news.
All told, Nexa Resources S.A. NEXA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, NEXA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Nexa Resources S.A. NEXA is now commanding a market cap of 850.88M and a float of 45.29M. NEXA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of NEXA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in NEXA, either long or short, and we have not been compensated for this article.