Shares of Fresnillo Plc (LON: FRES), a Mexican precious metals mining company listed on the London Stock Exchange are up 88.3% since June this year; could there be more upside in store for the company?
Well, the stock’s technicals indicate that a breakout is on the cards for the company given that it has formed a rising triangle over the past few weeks.
However, it is not clear whether the breakout shall be to the upside or downside, but given the prior uptrend, the odds of a bullish breakout are slightly higher than those of a bearish breakout.
Interested in investing after today’s move?
XTB gives investors access to thousands of UK and international stocks,
including fractional shares from just £1.
Explore stocks with XTB →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to invest in the stocks making the news?
Go from following the market to investing in it, with access to thousands
of stocks across major UK and international markets.
See available stocks →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Own the stocks you’re reading about
Invest in real shares across the UK, US and other major global markets
through XTB, all from one investment account.
Explore XTB shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
You don’t need to buy a whole share
Fractional shares let you invest from just £1, giving you more control
over how much you put into individual companies.
Explore fractional shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to see how XTB works first?
Explore the platform with an XTB demo account before deciding whether
you want to invest with real money.
Try the XTB demo →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
An analysis of the company’s fundamentals indicates that it trails its industry peers on many fronts including having a much lower return on equity, as well as lower net income growth.
Regardless, the company has a medium payout ratio of 57% over the past three years, which shows the company’s dedication to rewarding its shareholders.
Fresnillo has consistently paid dividends over the past ten years, making it an attractive holding for dividend investors.
However, I would wait for the price to break out of the rising triangle before establishing a position in Fresnillo.
Fresnillo share price
Fresnillo shares are up 88.3% since June when it was trading at 717.5p before rallying to its recent high of 1351.5p.
People who read this also read:
