Today's Momo Momentum Stock To Watch: Randgold Resources (GOLD)

Trade-Ideas LLC identified Randgold Resources (GOLD) as a momo momentum candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Randgold Resources

(

GOLD

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Randgold Resources as such a stock due to the following factors:

  • GOLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $174.8 million.
  • GOLD has a PE ratio of 59.
  • GOLD is currently in the upper 30% of its 1-year range.
  • GOLD is in the upper 25% of its 20-day range.
  • GOLD is in the upper 35% of its 5-day range.
  • GOLD is currently trading above yesterday's high.
  • GOLD has experienced a gap between today's open and yesterday's close of 2.1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on GOLD:

Randgold Resources Limited explores for and develops gold deposits in Sub-Saharan Africa. The stock currently has a dividend yield of 0.5%. GOLD has a PE ratio of 59. Currently there are 3 analysts that rate Randgold Resources a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Randgold Resources has been 1.0 million shares per day over the past 30 days. Randgold has a market cap of $11.0 billion and is part of the basic materials sector and metals & mining industry. Shares are up 97.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Randgold Resources as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 45.6%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • GOLD's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 67.34% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GOLD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 46.32% is the gross profit margin for RANDGOLD RESOURCES LTD which we consider to be strong. It has increased significantly from the same period last year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 12.8% when compared to the same quarter one year prior, going from $48.20 million to $54.36 million.

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