NEXA Should I Buy
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Nexa Resources SA is not a strong buy for a beginner investor seeking long-term growth at this moment. While the stock has shown recent price momentum and positive revenue growth, the overbought technical indicators, declining net income, and lack of strong buy signals from proprietary trading systems suggest caution. The investor should consider waiting for a more favorable entry point or clearer long-term growth signals.
The stock is in a bullish trend with MACD positively expanding and moving averages showing strength (SMA_5 > SMA_20 > SMA_200). However, RSI_6 is at 92.281, indicating the stock is overbought. Key resistance levels are at R1: 15.38 and R2: 16.844, with support at S1: 10.64 and S2: 9.176.
Recent price momentum with a 22.7% surge on April 16, strong Q4 2025 revenue growth of 21.88% YoY, and bullish technical indicators. Analysts have raised price targets recently, reflecting optimism.
Net income and EPS have dropped significantly YoY (-151.12% and -151.35%, respectively). The stock is overbought based on RSI, and consensus EPS estimates for the upcoming quarter have been revised down by 14.3%.
In Q4 2025, revenue increased by 21.88% YoY to $903 million, and gross margin improved by 71.53% YoY to 33.14. However, net income dropped by -151.12% YoY to $50.35 million, and EPS declined by -151.35% YoY to $0.38.
Analyst sentiment is mixed. Recent upgrades include Morgan Stanley moving to Equal Weight and Citi raising the price target to $12.50. However, Scotiabank and Citi have also lowered price targets in the past, and there are no strong buy recommendations.
