I try not to feature the same stock too often but NewMarket (NEU) popped up near the top of my screener again, states Jim Van Meerten of BarChart.com.

I last featured the company on 8/1 when the stock was at 451.65 compared to its close today at 510.61 - a nice gain of 58.96 or 13% in about 75 days.

The chart of the day belongs to the chemical company NewMarket. I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and a Trend Seeker buy signal. I then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/ 2 the stock gained 5.30%.

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NEU Price vs Daily Moving Averages

NewMarket Corporation, through its subsidiaries, primarily engages in the manufacture and sale of petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 67.00+ Weighted Alpha
  • 68.00% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50, and 100-day moving averages
  • 11 new highs and up 12.96% in the last month
  • Relative Strength Index 70.90%
  • Technical support level at $506.09
  • Recently traded at $510.61 with 50-day moving average of $465.65

Fundamental Factors:

  • Market Cap $4.9 billion
  • P/E 12.14
  • Dividend yield 1.70%
  • Not widely followed by Wall Street so no Revenue and Earnings projections

Analysts and Investor Sentiment: I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • The individual investors following the stock on Motley Fool voted 259 to 11 for the stock to beat the market with the more experienced investors voting 41 to one for the same result
  • Value Line rates its above average of two
  • CFRAs MarketScope rates it a strong buy
  • 2,420 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.