‘Long Term 100% Buy’ Indicator Points to Coeur Mining (CDE) as a Strong Play

If the NYSE Group is a trusted indicator, there are 8,000 securities listed on U.S. stock exchanges, including exchange-traded funds. On one hand, that opens the door to seemingly endless ideas and opportunities. But on the other hand, that’s a ton of enterprises to sift through. Not every proposal will be a winner, leaving many investors in a conundrum.

I don’t know about you but I have better things to do than to sit down and pour over financial and technical charts of thousands of publicly traded companies. Even if strictly rifling through ideas based on chart patterns, the initiative quickly becomes onerous. Further, relying on the collective wisdom of social media isn’t all that helpful due to biases and other challenges.

What you need is a thorough, standardized filter to wade through the muck, only bringing to your attention the most compelling ideas. Barchart’s “Long Term 100% Buy Signals” screener can save you time and direct you to your next big opportunity.

Listed under Barchart Screeners – which is one of the drop-down menus under the heading “Investing”– the 100% Buy indicator finds bullish ideas that have a sustained 100% overall buy signal (that is, the combination of all 13 technical indicators that make up the Barchart Opinion index) for over a one-month period.

In other words, the filter ignores flashes in the pan. Instead, it focuses solely on securities that have consistently broadcast bullish technical signals. By doing so, the dynamic implies that robust fundamentals undergird the opportunity.

One particular idea stands out from this screener: silver and gold mining specialist Coeur Mining (CDE).

CDE Stock Presents a Low-Priced Speculative Idea

Admittedly, an enticing component of the speculative bull case for CDE stock centers on its low price. Closing the Thursday session at $5.37, the single-digit rate may entice market gamblers. Essentially, it doesn’t take much “energy” to move shares. Of course, that goes for the upside and downside, which is part of the risk-reward profile of smaller mid-capitalization firms.

Technically speaking, CDE stock pinged the Long Term 100% Buy indicator thanks to its blistering chart performance. Since the start of the year, shares gained almost 65% of equity value. Just in the trailing month, CDE returned stakeholders over 16%. In the past three months, the mining firm popped up over 97%.

Of course, investors should depend on more than just the technical backdrop. Notably, the fundamentals also support the case for a higher market value of CDE stock. Since the end of February, the price of gold has been soaring, thus undergirding the silver price thanks to the two metals’ strong correlation.

More importantly, one of the key catalysts for gold has been the fear trade. Recently, Iranian President Ebrahim Raisi succumbed to a shocking helicopter crash, which raises concerns about geopolitical instability in the region. Just last month, Raisi issued a controversial statement that Israel must be brought to justice for “usurpation and oppression” of the Palestinian territories.

Exacerbating the situation is Russia, one of Iran’s allies. The country has shown no sign of willingness to curtail its invasion of Ukraine. Recently, Russian President Vladimir Putin signed a decree that would allow his government “to confiscate assets of U.S. companies and individuals to compensate for any Russian assets confiscated in the United States.”

With the potential for a miscalculation yielding catastrophic results ringing high, gold has been steadily marching northward, taking silver with it. Cynically, that has been a positive for CDE stock.

Financials Support the Cause

At the moment, eight analysts cover CDE stock, featuring a consensus view of Moderate Buy. This assessment breaks down as four Strong Buys, two Moderate Buys and two Holds. Three months ago, six analysts covered Coeur, with the change being that there were two fewer Strong Buy ratings.

In fairness, the mean price target of $5.45 leaves little room for growth. Further, the high-side target of $6 isn’t outstandingly impressive. Nevertheless, it’s quite possible that analysts will adjust their forecasts based on new realities, particularly in the geopolitical realm. Additionally, the latest labor market readings indicate stronger-than-expected sentiment, implying sticky inflation that could bolster the precious metals complex.

Financially, experts believe that for fiscal 2024, Coeur will post earnings per share of 1 cent on revenue of $994.34 million. That would be a big step up from last year’s results of a loss per share of 23 cents on sales of $821.21 million.

Looking out to fiscal 2025, EPS could be 26 cents with a top line of $1.15 billion. For full disclosure, CDE stock carries a high revenue multiple of 2.36X. However, against fiscal 2025 sales, CDE would feature a more modest multiple of 1.86X. Therefore, it still has room to grow.