Buys and Sells in the Top 25 Mining Stocks (AA, BHP, RTP, VALE)

A weaker dollar is all but ensured as interest rates remain low and federal spending remains high. That means inflation for commodities from corn to crude oil to gold that are priced in dollars simply by virtue of currency exchange rates. As the dollar drops, these goods naturally are boosted. That has many investors looking at metal and mining stocks like Alcoa (AA), BHP Billiton (BHP), Rio Tinto (RTP) and Vale (VALE) as possible investments.

Coupled with an aversion to risk, the market has been booming for metals like silver and gold. Gold prices remain above $1,100 an ounce and the gold bugs are calling for prices to move higher.

But does that mean that metals and mining stocks are good buys right now? Not necessarily. I place a priority on stocks with great fundamentals — meaning the ability to grow profits and earnings consistently quarter to quarter and year to year. Just because gold is pricey now doesn’t mean that gold miners will maintain their growth, or that they are operating at big enough margins to capitalize on the current conditions.

Also, it’s important to follow the money. Many metal and mining stocks have fallen out of favor as investors turn to other hot sectors such as technology and healthcare. This lack of buying pressure pushing up shares (or “quantitative pressure” in Wall Street speak) makes it difficult for miners to post the dramatic gains many investors are looking for right now.

Listed below are the 25 biggest metals and miners on Wall Street (measured by market cap), with a breakdown of their quantitative grades and fundamental grades according to my own Portfolio Grader database calculations.

You can get in-depth fundamental analysis and a one-year history of rankings absolutely FREE via my Portfolio Grader tool, but the overall grades below are worth noting. Only one stocks in the entire sector — Teck Resources (TCK) — qualifies for my highest overall grade and only Russian miner Mechel (MTL) gets the second-best ranking of a B overall. The rest of the sector is rather lackluster.

Portfolio Grader, my FREE stock ranking tool, offers updated recommendations each week on about 5,000 publicly traded stocks. The database is updated every Monday morning to give you the latest info on the hottest Wall Street companies. You can get access to PortfolioGrader at InvestorPlace.com by clicking on my bio under the “our experts” heading at the top of any page.

  1. Alcoa (AA): Market cap of $13.9B, total grade of  D for Sell
  2. Barrick Gold Corp. (ABX): Market cap of $36.8B, total grade of F for “Strong Sell”
  3. Aluminum Corp. of China (ACH): Market cap of $13.6B, total grade of F for “Strong Sell”
  4. Agnico-Eagle Mines (AEM): Market cap of  $8.7B,  total grade of F for “Strong Sell”
  5. AngloGold Ashanti Ltd. ((AU): Market cap of $13.2B, total grade of F for “Strong Sell”
  6. BHP Billiton PLC (BBL): Market cap of $185.7B, total grade of D for “Sell”
  7. BHP Billiton Ltd. (BHP): Market cap of $218.7B, total grade of D for “Sell”
  8. Cliffs Natural Resources Inc.  (CLF): Market cap of $9.3B, total grade of C for “Hold”
  9. Freeport-McMoRan Copper & Gold (FCX): Market cap of $34.0B, total grade of D for “Sell”
  10. Gold Fields Ltd. (GFI): Market cap of $8.6B, total grade of D for “Sell”
  11. Goldcorp Inc. (GG): Market cap of $27.2B, total grade of D for “Sell”
  12. Gerdau S.A. (GGB): Market cap of $13.8B, total grade of C for “Hold”
  13. Kinross Gold (KGC): Market cap of $11.8B, total grade of D for “Sell”
  14. ArcelorMittal (MT): Market cap of $66.3B, total grade of D for “Sell”
  15. Mechel OAO (MTL): Market cap of $13.B, total grade of B for “Buy”
  16. Newmont Mining Corp. (NEM): Market cap of $24.2B, total grade of D for “Sell”
  17. Nucor Corp. (NUE): Market cap of  $14.4B, total grade of F for “Strong Sell”
  18. POSCO (PKX): Market cap of $35.8 B, total grade of D for “Sell”
  19. Rio Tinto PLC (RTP): Market cap of $113.2B, total grade of D for “Sell”
  20. Southern Copper (SCCO): Market cap of $26.3B, total grade of D for “Sell”
  21. Companhia Siderurgica Nacional  (SID):  Market cap of  $28.8B, total grade of C for “Hold”
  22. Sterlite Industries (India) Ltd. (SLT): Market cap of $15.1B, total grade of C for “Hold”
  23. Teck Resources Ltd.  (TCK):  Market cap of $23.7B, total grade of A for “Strong Buy”
  24. Vale S.A. (VALE): Market cap of $160.5B, total grade of C for “Hold”
  25. United States Steel (X): Market cap of $9.2B, total grade of D for “Sell”

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Article printed from InvestorPlace Media, https://investorplace.com/2010/04/metal-mining-stocks-aa-bhp-rtp-mtl-tck/.

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