3 Mining Stocks for the new Gold Rush
With mining stocks, all eyes have been on gold over the past few months because it is the attractive metal. Gold’s the metal that financial reporters wish to discuss and it is the metal most investors clamor for. But while gold is hitting new all-time highs, other metals are posting much higher gains in 2009 and never a word has been said about them.
Other mining stocks, for example, silver, long considered to be gold’s poorer cousin, is up 59% for the year compared to gold’s 25%. Platinum can be up nearly 60%. Copper prices have doubled. But nobody has come close to pallidium’s returns, up nearly 95% in 2009.
While you possibly can obtain gold and silver through bars, coins and jewelry, it isn’t really easy to buy many of the opposite metals, especially if you’re using them as an investment.
How Can An Investor Get Into the Mining Stocks Trade?
Investors can use ETFs to spend money on some of the actual metals themselves but for those looking to purchase mining stocks, shares of mining companies are the technique to get in on the metal trade.
While there are a variety of choices out there amongst the mining stocks, including buying the junior miners, a primary time investor should consider one in every of the large global mining companies.
The worldwide mining stocks giants provide more diversity, as lots of them mine in more than one metal and in numerous regions world wide. The diversity is a should have as unstable government regimes can wreck havoc with even the best mining stocks.
The global miners also offer fairly stable dividends with decent yields which is an added bonus as the world’s mining stocks remain volatile.
3 Global Mining Stocks for 2010
BHP Billiton (BHP – Analyst Report) is headquartered in Australia and has operations in greater than 25 countries around the globe.
The corporate has its hands in nearly every natural resource, including steelmaking mining products like iron ore, coal and manganese, non-ferrous mining products similar to copper, nickel and diamonds and energy products including uranium, petroleum and liquefied natural gas.
Analysts see 27.89% earnings growth in fiscal 2010 which ends in June 2010. 2 out of 7 analysts have raised 2010 estimates in the last 30 days. Analysts are much more bullish on fiscal 2011, with earnings per share expected to jump another 48.50%.
The corporate is trading with a forward P/E of 27.8. It rewards shareholders with a dividend Petroleum Product manufacture yielding 2.12%. BHP Billiton is a Zacks #3 Rank (hold) mining stocks.
BHP Billiton has more than doubled off its November 2008 low.
Rio Tinto (RTP – Analyst Report) is headquartered in London and has operations on every continent.
Like BHP, it has its hands in nearly every natural resource with aluminum, copper, diamonds, gold, industrial minerals, iron ore and energy products.
With metal prices rising, Rio Tinto is expected to expand its 2009 earnings by 43.35% over 2008. Analysts see the expansion continuing into 2010 because the Zacks Consensus is at $16.23 per share which is 30.62% higher than the 2009 estimate of $12.43.
Rio Tinto has a solid valuation. It is trading with a forward P/E of just 16.8. It also pays a dividend with a yield of 1.30%. Rio Tinto is a Zacks #2 Rank (buy) for mining stocks.
Rio Tinto has doubled off its 2008 low.
Barrick Gold Corp. (ABX – Analyst Report) is the world’s largest gold miner for mining stocks. Headquartered in Canada, Barrick operates 26 mines on 5 continents.
With all of its mining stocks, gold is its biggest commodity, however it also mines copper and silver, among other metals. On Dec 1, the corporate announced it had totally eliminated its gold hedges at the price of $5.1 billion in order that it could benefit from rising gold prices.
Earnings growth in 2009 has been non-existent. Analysts expect it to be 1.38% below 2008 earnings. But with the taking away of the gold hedges, analysts are more optimistic heading into 2010. 7 out of twenty-two analysts have raised 2010 estimates in the last 30 days. Earnings are anticipated to jump 25.52% over 2009.
Barrick has surprised on estimates 3 out of the last 4 quarters by an average of 10.87%. It has a P/E of 21.46. It also pays a dividend with a yield of 1.00%. Barrick is a Zacks #3 Rank (hold) stock.