Rio Tinto (RIO) hits bottom of 4-month range and gets a bullish signal
London-based Rio Tinto Group (NYSE: RIO) is in the business of mining aluminum, silver, copper, and gold. The stock has been trading in a range between $57 and $64 for the last four months and it just recently hit the bottom of the range as the overbought/oversold indicators were hitting oversold levels. This could be a good sign for the stock over the next month. If you look at the range, it is 12.3% from the bottom to the top.
The Tickeron Trend Prediction Engine generated a bullish signal for Rio Tinto on July 29 and that signal showed a confidence level of 73%. Past predictions for the stock have been successful 65% of the time. This signal was a monthly signal and it calls for a gain of at least 4% within the next month.
From a fundamental perspective, Rio Tinto has produced mixed results. The earnings have grown at a rate of 44% per year over the last three years, but they were down by 2% in the most recent quarterly report. The company is expected to release earnings again on August 1.
The management efficiency measurements for the company are pretty strong with a return on equity of 19.9% and a profit margin of 32.5%. The company doesn’t have any long-term debt and that could be a plus if the global economy slips into a recession.
RIO saw its Stochastic Oscillator peaks and leaves the overbought zone
The Stochastic Oscillator for RIO moved out of overbought territory on July 08, 2025. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 67 similar instances where the indicator exited the overbought zone. In of the 67 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day moving average for RIO crossed bearishly below the 50-day moving average on June 11, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RIO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
RIO broke above its upper Bollinger Band on July 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for RIO entered a downward trend on July 02, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where RIO's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 02, 2025. You may want to consider a long position or call options on RIO as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for RIO just turned positive on June 27, 2025. Looking at past instances where RIO's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
RIO moved above its 50-day moving average on July 11, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RIO advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.909) is normal, around the industry mean (5.006). P/E Ratio (10.410) is within average values for comparable stocks, (108.418). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.744). Dividend Yield (0.068) settles around the average of (0.055) among similar stocks. P/S Ratio (1.938) is also within normal values, averaging (249.230).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. RIO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a miner of for mineral resources
Industry OtherMetalsMinerals
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