Five iron ore stocks to watch as metal prices tumble

Highlights

  • Rio Tinto plc’s net cash from operations (NYSE: RIO) was US$13.7 billion in the first half of 2021.
  • The BHP Group plc’s profit from operations (NYSE: BBL) was US$25.9 billion in the year ended June 2021.
  • The stock of Cleveland-Cliffs Inc. (NYSE: CLF) rose 3% in intraday trading.

Iron stocks are in the focus of late as iron ore prices plummet due to falling demand from China, the world’s second-largest economy. The prices have fallen about 40 percent since mid-July.

The falling iron ore prices have affected steel-producing countries like Australia, Brazil, etc., which are already reeling under the weight of the pandemic and the economic downturn.

Here we explore five hot iron-ore stocks that have performed well during the covid recession.

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Rio Tinto plc (NYSE: RIO)

The stock of this London-based company traded at US$73.38, up 1.19 percent, at 9:36 am ET on August 23, compared to its previous closing price. The stock value of RIO declined 6.29 percent YTD. Its market cap is US$117.4 billion, and the forward P/E one year is 4.51.

The 52-week highest and the lowest stock price of the mining company was US$95.97 and US$55.39. Its share volume on August 20 was 2,705,286.

The company reported US$13.7 billion in net cash from operations through six months ended on June 30. In addition, its free cash flow surged 262 percent YoY to US$10.2 billion.

The underlying earnings in the first half rose 156 percent YoY to US$12.16 billion. Its net earnings came in at US$12.31 billion.

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Source: pixabay

BHP Group plc (NYSE: BBL)

The stock of this mining company traded at US$60.68, up 1.27 percent, at 10:43 am ET on August 23 compared to its previous closing price. The stock value of BBL rose 8.81 percent YTD. Its market cap is US$152.9 billion, and the forward P/E one year is 6.30.

The highest and lowest stock price of the Melbourne, Australia-based company for the last 52 weeks was US$68.05 and US$37.88. Its share volume on August 20 was 2,661,044.

It reported a profit of US$11.3 billion in the year ended June 2021. Its underlying attributable profit was US$17.1 billion. The profit from operations came in at US$25.9 billion, up from US$14.4 billion in fiscal 2020. Its underlying EBITDA was US$37.4 billion.

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Vale SA (NYSE: VALE)

The stock of this mining company traded at US$18.05, down 0.99 percent, at 11:21 am ET on August 23 compared to its previous closing price. The stock value of VALE surged 4.77 percent YTD. Its market cap is US$90.7 billion, the P/E ratio is 5.5, and the forward P/E one year is 3.07. Its earnings per share (EPS) is US$3.29.

The highest and lowest stock price of the Brazilian company for the last 52 weeks was US$23.18 and US$10.29. Its share volume on August 20 was 30,253,280. The company’s net income in Q2, 2021, was US$7.586 billion, up about 600 percent from the year-ago quarter.

Its earnings before interest, taxes, and other expenditures, surged by 32 percent YoY to US$11 billion, according to its securities filings.

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Cleveland-Cliffs Inc. (NYSE: CLF)


The stock of this Cleveland, Ohio-based company traded at US$23.68, up 3 percent, at 11:28 am ET on August 23 compared to its previous closing price. The stock value of CLF surged 59.43 percent YTD. Its market cap is US$11.83 billion, the P/E ratio is 15.58, and the forward P/E one year is 3.74. Its earnings per share (EPS) is US$1.52.

The highest and lowest stock price of CLF for the last 52 weeks was US$26.51 and US$5.48. Its share volume on August 20 was 20,582,230.

The total revenue of the firm in Q2 of 2021 was US$5.0 billion, compared to US$1.0 billion in the year-ago quarter. Its net income for the period came in at US$795 million compared to a loss of US$108 million in Q2, 2020. Its total adjusted EBITDA 1 was US$1.4 billion, compared to a loss of US$82 million for the same period a year ago.

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Source: pixabay

Arcelor Mittal (NYSE: MT)

The stock of this steel production company traded at US$33.40, up 2.08 percent, at 11:35 am ET on August 23 compared to its previous closing price. The stock value of MT surged 36.62 percent YTD. Its market cap is US$33.83 billion, the P/E ratio is 5.41, and the forward P/E one year is 2.61. The earnings per share (EPS) is US$6.18.

The highest and lowest stock price of the Luxembourg-based company for the last 52 weeks was US$36.58 and US$11.29. Its share volume on August 20 was 5,726,158. The company reported an operating income of US$4.4 billion in Q2 of fiscal 2021, compared to US$2.6 billion in Q1, 2021. In addition, it clocked an operating income of US$7.1 billion in the first half of 2021.

The EBITDA was US$5.1 billion in Q2, 2021, up 55.8 percent from the previous quarter. Its net income came in at US$4 billion in Q2, 2021, compared to US$2.3 billion in Q1 of fiscal 2021.

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Bottomline

Iron plays a significant role in the global economy. It is the main component for making steel used in various construction projects. In addition, steel is also used in the automobile industry. However, BHP, the leading Australian mining company, has forecast a drop in iron ore demand from China. In addition, it also expects a slowdown in Chinese crude steel production that may impact the global steel market.

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