With new metals investors in mind, here are four of the top mining stocks currently trading on the TSX Index, and worthy of a place in a new portfolio.
The top choice for copper bulls With its share price down 5.27% in the last five days, Lundin Mining (TSX:LUN) is cheap as chips at the moment, and my top suggested metal stock to buy for a brand new portfolio. Discounted by more than 50% of its fair value, Lundin Mining could bring some hefty upside to a Canadian metals investor at its current valuation.
Straddling several desirable metals (copper, nickel, and zinc) and occupying a stable corner of the TSX Index, while Lundin Mining’s share price may be taking a bashing at present, it’s a solid buy for the value-focused mining bull.
Though insiders have been busy selling shares of late, there’s plenty to recommend Lundin Mining to newcomers looking for superior, potentially lucrative stocks: its five-year average past earnings growth of 23.9% denotes a solid player in the metals space, while a clean balance sheet and dividend yield of 1.83% make for an attractive play for passive income.
A newly merged gold mining super-stock A stock that could become a much bigger deal in the near future (as soon as investors decide to pile on board), Newmont Goldcorp (TSX:NGT)(NYSE:NEM) offers a dividend yield of 1.82% with a projected 55.3% growth in earnings on the way.
While technically undervalued (with a current share price of $41.20 showing a 13% discount against its future cash flow value of $47.48), its price-to-earnings is in the 70s. Still, up 3.3% in the last five days, this is a popular stock that could rocket, and whatever the valuation it’s worth a pop.
An excellent shared track record makes for a sturdy investment, and with a debt level that is within the 40% safety zone and well covered by operating cash flow, there’s a healthy balance sheet on display here as well.
A mining stock for tech fans Third on today’s list of must-see metals stocks is Lithium Americas (TSX:LAC)(NYSE:LAC). With no prizes for guessing what business this company is in, Lithium Americas is a good choice for fans of tech, whether phones, laptops, cars, or gaming. With returns of 17.4% over the last five years and one-year past earnings growth of 15%, it’s not a high-performance stock at the moment, though a 35.2% earnings growth spurt is on the way.
The dividend-paying runner-up With insiders having only sold shares of late, Wheaton Precious Metals (TSX:WPM)(NYSE:WPM) looks a little down-at-heel at the moment. Still, with a solid track record and a P/B of 1.7 times book, there’s nothing wrong with this miner – apart from a negative outlook in terms of earnings growth, that is. A dividend yield of 1.78% is appealing, and gold bulls may still want to give this otherwise healthy stock a spin.
The bottom line There’s a lot to suggest that Lundin Mining and Newmont Goldcorp belong on your new metals and mining stock wish list. While Lithium Americas’ debt has doubled over the last five years, more shares have been bought than sold by insiders recently, making for a solid peer-driven choice, while Wheaton Precious Metals may be more of a gamble given its current outlook.
Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. Wheaton Precious Metals is a recommendation of Stock Advisor Canada.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019