5 Undervalued High Free Cash Flow Stocks to Buy Amid Recession

2. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 26

PE Ratio: 5.62

Free Cash Flow TTM: $18 Billion

Rio Tinto Group (NYSE:RIO) is a diversified metals and mining firm. On July 28, the company announced that it had formed a partnership with a Chinese firm named Winning Consortium Simandou and local authorities for the Simandou iron ore mine project. The project is the largest undeveloped iron ore reserve in the world and is based in Guinea. As part of the project, the two firms will also jointly develop a 600-km railway and port to export the ore that is extracted after the production begins. 

On July 28, investment advisory JPMorgan maintained a Neutral rating on Rio Tinto Group (NYSE:RIO) stock and increased the price target to GBP 5,350 from GBP 5,300. Analyst Lyndon Fagan issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Rio Tinto Group (NYSE:RIO), with 14 million shares worth more than $1.1 billion.