Rio Tinto is one of the world’s leading companies involved in the mining, processing, and finding mineral resources all around the world. Listed on three stock exchanges on three different continents (Australia, Europe, North America), Rio Tinto was founded in 1873 and employs close to 40,000 people.
One week from now, Rio Tinto reports its Q4 2020 earnings. Its share price recovered from the 2020 lows and evolved in a steady, rising trend. Can the price move even higher on the back of the upcoming release?
When Does Rio Tinto Report Q4 Earnings?
On the 17th of February at 08:30 AM GMT, Rio Tinto reports the earnings for the last quarter of last year.
Market Expectations from Rio Tinto’s Earnings Statement?
The market has high expectations from Rio Tinto’s upcoming earnings – and for a good reason. Commodity prices were on the rise since the 2020 pandemic, and the higher prices should reflect Rio Tinto’s earnings too.
As such, the market expects EPS to grow by 12.95% on a YoY basis and revenues to reach over $48 billion. Any upside surprise should be seen in the share price’s evolution.
Rio Tinto Shares: Technical Analysis
The technical analysis picture reveals the bullish trend that started since the 2020 dip in global equities. Ever since the commodity prices recovered, and so did Rio Tinto’s share price.
However, at this point, both bulls and bears may have something to trade. Let’s start with the bulls. On the bullish side, the rising uptrend is alive and kicking – as long as the market keeps the higher lows series, bulls will keep buying the dip. On the bearish side, the market appears to form a head and shoulders pattern. Yet, even the measured move of the head and shoulder pattern is not enough to break the higher lows series mentioned earlier.
Bulls may be better off waiting for a decline in the lower half of the rising channel, while bears may be better off to wait and see the earnings outcome before deciding to pull the trigger on a short trade.
Overall, the technical picture is more bullish than bearish.
What Is the Outlook for the Rio Tinto Share Price?
Rio Tinto’s share price is up over 200% in the last five years. It is up 50% in the last twelve months alone, on the back of higher commodity prices fueled by a weak dollar. As long as the trend continues, Rio Tinto’s share price will keep pressuring the highs because any percentage increase in the price of commodities will eventually be seen in Rio Tinto’s financial statements.