McEwen Mining (MUX) Flagged As Strong On High Volume

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified McEwen Mining ( MUX) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified McEwen Mining as such a stock due to the following factors:

  • MUX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.0 million.
  • MUX has traded 351,900 shares today.
  • MUX is trading at 3.27 times the normal volume for the stock at this time of day.
  • MUX is trading at a new high 7.14% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MUX with the Ticky from Trade-Ideas. See the FREE profile for MUX NOW at Trade-Ideas

More details on MUX:

McEwen Mining Inc. explores for, develops, produces, and sells precious and base metals in Argentina, Mexico, and the United States. It primarily explores for gold, silver, and copper. Currently there is 1 analyst that rates McEwen Mining a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for McEwen Mining has been 2.3 million shares per day over the past 30 days. McEwen has a market cap of $354.0 million and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.91 and a short float of 16.2% with 9.42 days to cover. Shares are down 28.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates McEwen Mining as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • MUX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 35.54%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, MCEWEN MINING INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • MCEWEN MINING INC has improved earnings per share by 18.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MCEWEN MINING INC reported poor results of -$0.50 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.00 versus -$0.50).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Metals & Mining industry average. The net income increased by 19.2% when compared to the same quarter one year prior, going from -$128.68 million to -$104.02 million.
  • Net operating cash flow has significantly increased by 68.48% to -$3.21 million when compared to the same quarter last year. In addition, MCEWEN MINING INC has also vastly surpassed the industry average cash flow growth rate of -55.48%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet