NRW Holdings has been among the best-performing stocks over the past few sessions following a strong trading update.
NWH indicated they have a strong pipeline of new projects as an acceleration of public infrastructure spending occurs.
Based on FY21 earnings of $160mn we have the stock on a forward yield of 4.1%.
NRW Holdings is now under Algo Engine buy conditions following the high low pattern at $2.10.
The stock is outside our normal radar, however, we notice a number of analysts have recently upgraded their earnings outlook for the company.
The positive sentiment is based on an increase in work under contract and scope from existing contract mining clients to increase.
We see upside risk to forecasts from higher than expected conversion of the group’s resources pipeline, (opportunities from iron ore projects in particular) and the East Coast infrastructure project.
We flag NRW Holdings as worthy of further analysis. Watch the short-term indicators for a turn higher.