Newpark Resources Inc shares are closing back in on major support levels around 8.2 USD based on daily price data, which could offer attractive entry points.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 8.1 USD in weekly data.
● The close medium term support offers good timing for purchasing the stock.
● The prospective high growth for the next fiscal years is among the main assets of the company
● As regards fundamentals, the enterprise value to sales ratio is at 1.17 for the current period. Therefore, the company is undervalued.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 8.1 USD
Weaknesses
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 124.09 times its estimated earnings per share for the ongoing year.
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Newpark Resources, Inc. is a geographically diversified supplier providing products, as well as rentals and services to customers across multiple industries. The Company operates through two segments include Industrial Solutions, Fluids Systems and Industrial Blending. Its Industrial Solutions segment provides temporary worksite access solutions, including the rental of its recyclable composite matting systems, along with related site construction and services to customers in various markets including power transmission, oil and natural gas exploration and production (E&P), pipeline, renewable energy, petrochemical, construction and other industries, primarily in the United States and Europe. Its Fluids Systems segment provides drilling, completion, and stimulation fluids products and related technical services to customers for oil, natural gas, and geothermal projects primarily in North America and Europe, the Middle East and Africa, as well as certain countries in Asia Pacific.
NEWPARK RESOURCES, INC. 
