Setting Up For A Move Higher: Rio Tinto plc (RIO), Marsh & McLennan Companies, Inc. (MMC)

Rio Tinto plc (NYSE:RIO) average daily volatility for this week is 1.38% which is less than the 2.11% recorded over the past month. Its shares dropped by -16.81% or -$10.21 from its last recorded high of $60.72 which it attained on June 06 to close at $50.51 per share. Over the past 52 weeks, the shares of Rio Tinto plc has been trading as low as $44.62 before witnessing a massive surge by 13.2% or $5.89. This price movement has led to the RIO stock receiving more attention and has become one to watch out for. It dipped by -0.16% on Sunday and this got the market worried. The stock’s beta now stands at 0.78 and when compared to its 200-day moving average and its 50-day moving average, RIO price stands -2.54% below and 3.88% above respectively.

Rio Tinto plc (RIO) rose 2.56% this week, a trend that has led to both investors and traders taking note of the stock. Over the past one year, the equity price has embarked on a drop that has seen it decline -9.93% and is now up by 4.19% since start of this year. A look at its monthly performance shows that the stock has recorded a 9.12% gain over the past 30 days. Its equity price climbed by 3.65% over the past three months which led to its overall six-month decrease to stand at -6.55%.

Experts from research firms are bullish about the near-term performance of Rio Tinto plc with most of them predicting a $59.02 price target on a short-term (12 months) basis. The average price target by the analysts will see a 16.85% rise in the stock and would lead to RIO’s market cap to surge to $99.15B. The stock has been rated an average 1.6, which roughly stands towards the bullish end of the spectrum. Reuters looked into the 6 analysts that track Rio Tinto plc (NYSE:RIO) and find out that 1 of them rated it as a Hold. 5 of the 5 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at RIO technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 59.13 point. Its trading volume has lost -1429224 shares compared to readings over the past three months as it recently exchanged 1500776 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 2930000 shares, and this is 0.51 times the normal volume.

The price of Marsh & McLennan Companies, Inc. (NYSE:MMC) currently stands at $81.15 after it went down by $-0.31 or -0.38% and has found a strong support at $80.63 a share. If the MMC price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $80.12 mark would also be bad for the stock as it means that the stock would plunge by 1.27% from its current position. However, if the stock price is able to trade above the resistance point around $81.41, then it could likely surge higher to try and break the upward resistance which stands at $81.68 a share. Its average daily volatility over the past one month stands at 2.12%. The stock has plunged by 0.95% from its 52-weeks high of $80.38 which it reached on Apr. 12, 2018. In general, it is 8.44% above its 52-weeks lowest point which stands at $74.3 and this setback was observed on Dec. 26, 2018.

Analysts have predicted a price target for Marsh & McLennan Companies, Inc. (MMC) for 1 year and it stands at an average $90.36/share. This means that it would likely increase by 11.35% from its current position. The current price of the stock has been moving between $80.38 and $81.16. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $82. On the other hand, one analyst is super bullish about the price, setting a target as high as $95.

The MMC stock Stochastic Oscillator (%D) is at 92.46%, which means that it is currently overbought and its prices could dip very soon. The shares P/S ratio stands at 2.75 which compares to the 2.4 recorded by the industry or the 10.24 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 17.45, which is lower than the 21.12 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 12% over the past five years.

Analysts view Marsh & McLennan Companies, Inc. (NYSE:MMC) as a Buy, with 0 consensus rating. Reuters surveyed 17 analysts that follow MMC and found that 10 of those analysts rated the stock as a Hold. The remaining 7 were divided, with 6 analyst rating it as a Buy or a Strong Buy while 1 analysts advised investors to desist from buying Marsh & McLennan Companies, Inc. (MMC) shares or sell it if they already own it.