In this article, we will discuss the 5 best mining stocks to buy now. If you want to explore similar stocks, you can also take a look at 11 Best Mining Stocks To Buy Now.
5. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 39
Alcoa Corporation (NYSE:AA) is a leading miner and producer of bauxite, alumina, and aluminum. The company distributes its products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and international markets. On September 27, B. Riley analyst Lucas Pipes revised his price target on Alcoa Corporation (NYSE:AA) to $51 from $54 and reiterated a Neutral rating on the shares.
Alcoa Corporation (NYSE:AA) has abundant free cash flows and strong margins. The company has free cash flows of $1.15 billion and a trailing twelve-month operating margin of 21.69%. The stock is trading cheaply relative to earnings and is also paying a dividend. As of October 10, Alcoa Corporation (NYSE:AA) has a trailing twelve-month PE ratio of 7.73 and is offering a forward dividend yield of 1.03%. The stock is one of the best mining stocks to buy now.
At the end of Q2 2022, 39 hedge funds were eager on Alcoa Corporation (NYSE:AA) and held stakes worth $1.24 billion in the company. As of June 30, Soroban Capital Partners is the top shareholder in Alcoa Corporation (NYSE:AA) and has stakes worth $234.5 million in the company.
4. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 40
Barrick Gold Corporation (NYSE:GOLD) is one of the largest gold miners in the world and is one of the best mining stocks to invest in right now. The stock is trading at bargain levels and as of October 10, has a trailing twelve-month PE ratio of 13.53 and is offering a forward dividend yield of 5.17%. The company has free cash flows of $1.76 billion.
This July, Stifel analyst Ingrid Rico revised her price target on Barrick Gold Corporation (NYSE:GOLD) to C$35.25 from C$41 and reiterated a Buy rating on the shares. On September 12, Goldman Sachs analyst Emily Chieng started coverage of Barrick Gold Corporation (NYSE:GOLD) with a Neutral rating and an $18 price target.
At the close of Q2 2022, 40 hedge funds were long Barrick Gold Corporation (NYSE:GOLD) and held stakes worth $1.13 billion in the company. Of those, First Eagle Investment Management is the most prominent investor in the company and has stakes worth $471 million.
3. Teck Resources Ltd (NYSE:TECK)
Number of Hedge Fund Holders: 46
Teck Resources Ltd (NYSE:TECK) is involved in the exploration and mining of copper, zinc, steelmaking coal, and blended bitumen among other resources. At the end of Q2 2022, 46 hedge funds held stakes in Teck Resources Ltd (NYSE:TECK). The collective stakes of these hedge funds in the company were valued at $2.07 billion.
Wall Street is bullish on Teck Resources Ltd (NYSE:TECK) and the stock is one of the best mining stocks to invest in now. On September 28, Jefferies analyst Christopher LaFemina started coverage of Teck Resources Ltd (NYSE:TECK) with a Buy rating and a C$60 price target. On October 5, Deutsche Bank analyst Abhi Agarwal revised his price target on Teck Resources Ltd (NYSE:TECK) to $42 from $43 and maintained a Buy rating on the shares.
Teck Resources Ltd (NYSE:TECK) is presenting an attractive entry point for investors. As of October 10, the stock is trading at a PE multiple of 4x and is offering a forward dividend yield of 1.15%. The company is cash-rich and profitable. Teck Resources Ltd (NYSE:TECK) has free cash flows of $3.88 billion and has a trailing twelve-month operating margin of 46.64%.
As of June 30, Soroban Capital Partners owns more than 13 million shares of Teck Resources Ltd (NYSE:TECK) and is the top shareholder in the company. The fund’s stakes are valued at $416 million.
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 56
On September 21, Freeport-McMoran Inc. (NYSE:FCX) declared a quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on November 1 to stockholders of record at the close of business on October 14. As of October 10, the stock is offering a forward dividend yield of 2.07% and is trading at a PE multiple of 8.87. Freeport-McMoran Inc. (NYSE:FCX) is one of the best undervalued and dividend-paying mining stocks to buy now.
This July, Citi analyst Alexander Hacking raised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $29 from $28 and reiterated a Neutral rating on the shares. On October 5, Deutsche Bank analyst Abhi Agarwal revised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $30 from $35 and maintained a Hold rating on the shares.
At the close of Q2 2022, 56 hedge funds disclosed ownership of stakes in Freeport-McMoran Inc. (NYSE:FCX). The total value of these stakes amounted to $2.47 billion. As of June 30, Fisher Asset Management owns over 52 million shares of Freeport-McMoran Inc. (NYSE:FCX) and is the largest investor in the company. The investment covers 1.07% of Ken Fisher’s 13F portfolio.
Here is what Diamond Hill Capital had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its second-quarter 2022 investor letter:
“In Q1, shares of copper-focused mining company Freeport-McMoRan Inc. (NYSE:FCX) were up meaningfully with other copper producers on rising demand for conductive metals and supply risk concerns from Russia. Despite reporting excellent Q1 results, management raised its cost guidance for the year, attributing it to rising fuel costs and inflation of other materials. Freeport’s share price declined in Q2 with other large miners as a result, and we think the response by market participants is overdone. The company continues to generate strong free cash flow, which it has returned to shareholders in the form of dividends and buybacks. We also remain attracted to Freeport’s unique exposure to high-quality copper producing mines, which is a key industrial input, particularly for green technologies, and we believe it’s a strong business oriented toward strengthening end markets.”
1. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 56
Wall Street analysts are bullish on Newmont Corporation (NYSE:NEM). On September 12, Goldman Sachs analyst Emily Chieng took coverage of Newmont Corporation (NYSE:NEM) with a Buy rating and a $53 price target. This September, Barclays analyst Matthew Murphy revised his price target on Newmont Corporation (NYSE:NEM) to $57 from $58 and reiterated an Equal Weight rating on the shares.
As of October 10, Newmont Corporation (NYSE:NEM) is offering a forward dividend yield of 5.16% and has free cash flows of $2.38 billion. The company has a trailing twelve-month operating margin of 12.75% and is ranked high among the best mining stocks to buy now.
At the end of Q2 2022, 56 hedge funds were long Newmont Corporation (NYSE:NEM) and held stakes worth $2.91 billion in the company. As of June 30, GQG Partners is the most prominent shareholder in Newmont Corporation (NYSE:NEM) and has stakes worth $2 billion in the company.
Here is what First Eagle Investments had to say about Newmont Corporation (NYSE:NEM) in its second-quarter 2022 investor letter:
“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.
It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”
You can also take a look at 11 Best Dividend Stocks Under $50 and 11 Best American Dividend Stocks To Buy.
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