From VALE to BHP: Top nickel stocks to explore amid supply concerns

Highlights

• Rio Tinto Plc (NYSE: RIO) sales revenue surged 42% YoY in fiscal 2021.
• Haynes International (NASDAQ: HAYN) revenue rose over 37% in Q1, FY22.
• Materion Corporation (NYSE: MTRN) net sales were US$1.51 billion in fiscal 2021.

With the elevated geopolitical tensions, more and more investors are moving towards commodities to hedge against volatility. Commodity prices have skyrocketed in recent weeks due to supply concerns arising from the ongoing Russia-Ukraine conflict.

Nickel prices surged as much as 90% to US$55,000 a metric ton in the London Metal Exchange on Monday, the highest level in 35 years. Its previous record high was US$51,800 in 2007.

Here we explore the top five nickel stocks that may benefit from the rising prices.

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Vale S.A. (NYSE: VALE)

Vale S.A. is one of the leading metal and mining companies based in Rio de Janeiro, Brazil. It engages in the production of iron ore, iron ore pellets, nickel, copper, and other metals.

The shares of the company traded at US$19.98 at 10:05 am ET on March 8, down 3.01% from their closing price of March 7. Its stock value increased by 14.57% over the last six months.

The firm has a market cap of US$96.69 billion, a P/E ratio of 4.26, and a forward one-year P/E ratio of 6.02. Its EPS is US$4.68.

The 52-week highest and lowest stock prices were US$23.18 and US$11.16, respectively. Its trading volume was 51,694,450 on March 7.

The company's net operating revenue was US$13.10 billion in Q4, FY21, while its net income attributable to stockholders came in at US$5.42 billion. For fiscal 2021, the company's net income was US$22.44 billion on operating revenue of US$54.50 billion.

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BHP Group (NYSE: BHP)

BHP Group is one of the major mining and petroleum firms based in Melbourne, Australia. It is a leading producer of copper, uranium, and other precious metals. However, a significant part of its mining portfolio also includes nickel.

The stock of the company traded at US$70.37 at pm ET on March 8, down 2.80% from its previous closing price. The BHP stock rose 18.69% over the past six months.

The market cap of the company is US$177.66 billion, and the forward one-year P/E ratio is 8.93. Its current yield is 8.21%, and its annualized dividend is US$6.00.

The stock saw the highest price of US$82.07 and the lowest price of US$51.88 in the last 52 weeks. Its share volume on March 7 was 6,735,297.

For the half-year ended on December 31, 2021, the company reported a revenue of US$30.52 billion, while its profit attributable to BHP shareholders was US$9.44 billion, or US$1.86 per diluted share.

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Rio Tinto Plc (NYSE: RIO)

Rio Tinto is one of the largest metal and mining companies in the world that produces iron ore, nickel, copper, gold, and other metals. It is based in London, UK.

The shares of the company traded at US$79.02 at 10:42 am ET on March 8, down 0.65% from their closing price of March 7. Its stock value grew 8.14% over last the six months.

The firm has a market cap of US$127.75 billion and a forward one-year P/E ratio of 7.56. Its current yield is 9.18%, and its annualized dividend is US$8.33.

The 52-week highest and lowest stock prices were US$95.97 and US$59.58, respectively. Its trading volume was 6,169,303 on March 7.

In fiscal 2021, the company's consolidated sales revenue was US$63.49 billion, representing an increase of 42% YoY. Its net earnings attributable to the company's shareholders were US$21.09 billion, or US$13.21 per share.

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Haynes International (NASDAQ: HAYN)

Haynes International is a Kokomo, Indiana-based firm that focuses on the development and production of alloys used in aerospace, chemical, and other related industries. It produces nickel, cobalt-based alloys, and other related products.

The stock of the company traded at US$38.79 at 10:52 am ET on March 8, down 3.99% from its previous closing price. The HAYN stock soared 6.88% over the past six months.

The market cap of the company is US$483.98 million, the P/E ratio is 125.35, and the forward one-year P/E ratio is 19.24. Its EPS is US$0.31.

The stock saw the highest price of US$47.08 and the lowest price of US$26.82 in the last 52 weeks. Its share volume on March 7 was 102,166.

The company's revenue surged 37.8% YoY to US$99.4 million in Q1, FY22, while its net income came in at US$4.65 million, or US$0.37 per diluted share.

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Materion Corporation (NYSE: MTRN)

Materion is a high-performance engineered material producer based in Mayfield Heights, Ohio. It engages in manufacturing advanced engineering materials for the semiconductors, aerospace, and defense industries.

The shares of the company traded at US$82.41 at 10:56 am ET on March 8, up 0.18% from their closing price of March 7. Its stock value increased by 15.05% over the last six months.

The firm has a market cap of US$1.66 billion, a P/E ratio of 23.16, and a forward one-year P/E ratio of 16.45. Its EPS is US$3.51.

The 52-week highest and lowest stock prices were US$96.00 and US$63.88, respectively. Its trading volume was 97,568 on March 7.

The company reported net sales of US$397.2 million in Q4, FY21, while its net income came in at US$19.68 million, or US$0.95 per diluted share. For fiscal 2021, the company reported net sales of US$1.51 billion.

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Bottom line:

The surge in commodity prices has threatened disruption across industries. The situation can aggravate if the Russian offensive in Ukraine doesn’t stop soon. A prolonged supply quagmire could slow down the pace of growth, leading to further economic disparities. On Tuesday, the London Metal Exchange suspended trading in its nickel market following an unexpected surge in prices over the last two days.