Stock of the Day

August 18, 2021

Rio Tinto Group (RIO)

$63.43
-$0.87 (-1.3%)
Market Cap: $79.61B

About Rio Tinto Group

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.

Rio Tinto Group Bull Case

Here are some ways that investors could benefit from investing in Rio Tinto Group:

  • Rio Tinto Group has recently been upgraded to a "strong-buy" rating, indicating strong confidence from analysts in the company's future performance.
  • The current stock price is $63.38, which is positioned well within its one-year range of $57.85 to $74.24, suggesting potential for growth.
  • Institutional ownership stands at 19.33%, reflecting a solid level of confidence from large investors, which can be a positive indicator for retail investors.
  • The company has a low debt-to-equity ratio of 0.23, indicating a strong balance sheet and lower financial risk, which is attractive for risk-averse investors.
  • Rio Tinto Group operates in multiple segments, including Iron Ore, Aluminium, and Copper, providing diversification that can help mitigate risks associated with market fluctuations in any single commodity.

Rio Tinto Group Bear Case

Investors should be bearish about investing in Rio Tinto Group for these reasons:

  • Jefferies Financial Group recently lowered its price target for the stock from $83.00 to $73.00, which may indicate concerns about the company's near-term performance.
  • Despite the positive ratings, four analysts have rated the stock as a hold, suggesting that there may be uncertainty about its future growth potential.
  • The company's fifty-day moving average is $60.63, which is below the current stock price, indicating potential short-term volatility.
  • Recent market conditions have been challenging for mining companies, which could impact Rio Tinto Group's profitability and stock performance.
  • With a consensus target price of $73.00, there may be limited upside potential compared to other investment opportunities in the market.

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