Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
The shares of diversified mining giant Rio Tinto (NYSE: RIO) has gained 5% year to date, outperforming the S&P500 index which has grown 3% during the same period. Rio Tinto is making a significant push into lithium to strengthen its position in the battery metals market.
Rio Tinto , has begun clearing ships from two Western Australian ports due to high seas as a result of tropical cyclones Tahliah and Vince, it said on Tuesday.
Rio Tinto is diversifying beyond iron ore, investing heavily in lithium production, positioning itself as a major player in the battery metals sector. The correlation between Rio Tinto's stock and iron ore prices has weakened recently, dropping below 0.5x due to the company's increased focus on lithium. Iron ore prices are expected to fall to $75-$120/ton in 2025, though the company should still generate strong free cash flow.
Jakob Stausholm, the CEO of Rio Tinto, discusses the outlook for the global mining industry at the World Economic Forum in Davos.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Rio Tinto share price has remained in a consolidation phase in the past few weeks as investors assess the prices of key commodities. The stock was trading at 5,000p in London, a few points below last year's high of 5,635p.
Rio Tinto RIO reported iron ore shipments (on a 100% basis) of 86.5 million tons (Mt) for the fourth quarter of 2024, which declined 1% year over year. This takes RIO's yearly total to 328 Mt, down 1% year over year, but within its guidance of 323-338 Mt.
Shares of Rio Tinto Group RIO have been in the red territory for a while now, having declined around 16% over a year. The stock is currently hovering near its 52-week low.
Freeport-McMoRan (NYSE: FCX), one of the largest producers of copper, has seen its stock underperform over the last three months, falling by 25% compared to the S&P 500 which was up 3%. Freeport's stock price movement is aligned with that for its peers, including Southern Copper Corp, which is down 21%, Rio Tinto (NYSE: RIO) which is down 18%, and VALE (NYSE: VALE) which is down 27% during the same period.
Arcadium Lithium is undervalued with a 13% upside to Rio Tinto's buyout price, expected to close mid 2025. Rio Tinto's acquisition of ALTM positions it as a major lithium player, with potential revenue growth as lithium prices recover. Rio Tinto is fundamentally and technically strong, trading at a low P/E ratio with substantial dividend growth potential.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?