It’s always a good idea to track analyst upgrades.

Often, upgrades and price revisions are influenced by 1) company fundamentals, such as financial health, future growth, and even meetings with management; 2) industry and market trends, including specific market conditions and economics; 3) earnings and financial data, including earnings reports that came in better than expected, or competitive analysis of a competitor, and guidance; 4) or, they may be piling into a stock based on other firms.

But never rely solely on upgrades to buy. Instead, pay attention to what’s happening technically and fundamentally. The last thing you want to do is buy into a recently upgraded, but overvalued stock. That’s a great way to lose money.

Look at Newmont (NEM).

Analysts at UBS just upgraded NEM to a buy rating with a price target of $60. Raymond James raised its price target on NEM to $64 from $54 with an outperform rating. RBC Capital raised its price target on NEM to $52 from $51 with a sector perform rating.

Since bottoming out at around $43, NEM raced to a recent high of $54.67. From here, if the stock can break above $58 resistance, we’d like to see it test $65 a share – especially with gold prices now well above $3,000 with trade war tensions.

Sincerely,

Ian Cooper