5 Best Mineral Stocks To Buy Now

In this article, we discuss the 5 best mineral stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Mineral Stocks To Buy Now.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. Lithium prices have more than doubled over the past year, so we are checking out this emerging lithium stock. We go through lists like the 10 best growth stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now, let’s take a look at the 5 best mineral stocks to buy according to hedge funds.

5. BHP Group (NYSE:BHP)

Number of Hedge Fund Holders: 24     

BHP Group (NYSE:BHP) is an Australian natural resources firm. It engages in the petroleum, copper, iron ore, and coal business. On November 7, merely weeks after the board of the firm approved a climate change plan that envisions net zero emissions by 2050 for suppliers and shippers, the company revealed that it had agreed to sell 80% of its stake in two Australian coal mines in a deal worth $1.35 billion. 

The move will help the BHP Group (NYSE:BHP) significantly reduce the carbon footprint of the company. Deutsche Bank analyst Liam Fitzpatrick recently termed the stock a Catalyst Buy Call as energy stocks extended a strong rally. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE:BHP) with 8 million shares worth more than $594 million. 

In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group (NYSE:BHP) was one of them. Here is what the fund said:

“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”