Top Commodity stocks investment opportunities June 2021

Top Commodities stocks investment opportunities June 2021

The world is piloting its way out of the Pandemic. As a result, demand for goods and services is beginning to come back to pre-pandemic levels. This has lent a good deal of impetus to commodity prices, besides the miners and the commodity stocks producing them. in this article, we discuss Top Commodities investment opportunities June 2021

As per Bank of America analysts, US GDP will hit the gas at 6.5%, p[ost the 2020 3.5% decline. There’s approbation across-th-board – Fitch ratings upgraded global growth to 6.1% not long back. 

Robust commodity demand is bound to support continued global economic improvement. Furthermore, supply levels likely quill remain restricted in the near term, partly because the preceding year’s oil price drops shook up enervated suppliers. As a result, remaining suppliers would expectedly be delinquent in their response to increased demand, which would, in turn, encourage higher prices. 

Commodity stocks come with another advantage top crypto liquidity providers. The economic upsurge is driving an inflationary uptick. Thus, commodities are rightly considered the hedge against inflation. 

Wheaton precious metals 

Wheaton precious metals is a precious multinational metal streaming company with much-vaunted (23) operating mines, most of which are situated across the Americas. Streaming is a blueprint in which a company concurs with purchasing all or parts of a mining firm’s future production. Overall, the price is generally lower than commodity market value, giving Wheaton potentially significant profit margins, and that too in an inflationary environment. 

Wheaton’s business model gives lends investors the benefits of both operating cost predictability and capital. Investors garner underlying commodity exposure whilst doing away with the usual dangers of developing and operating the mines. 

Some experts hold that Wheaton’s strong balance sheet and free cash flow should permit the company to invest in new streams, delivering robust returns to shareholders through dividends. Over the past four quarters, Wheaton has distributed near-about  30% of its operating cash flows to shareholders. 

Vale 

Vale, the numero uno among nickel producers globally and counted among the world’s largest iron ore producers, actively engages in other commodities. It stands for one of the very best infrastructure stocks. 

Vale is actually one of the ueber-performers, as proven by its excellent fourth-quarter earnings report. Year-over-year, profits of $1.09 per share were 85% higher. Besting consensus estimates of $14.3 Billion, revenues grew 48% YoY to nearly$15 billion.  

As per expert evaluation, copper demand is all raring to go – impelled by building, construction, and electrical network infrastructures. Moreover, targeted green economy investments worldwide have skyrocketed copper demand forecast in the electric vehicles and renewable energy markets. Yet another expert opinion assets that Vale shall be providing considerable exposure to international iron ore market structural changes, besides potential optionality within its nickel assets concerning electric vehicles. Also, Vale is involved n accelerated deleveraging, which in juxtaposition with better corporate governance gives the governance case impetus. 

Franco Nevada

Canada-provenanced royalty and streaming company Franco Nevada recently announced plans to expand the quarterly dividend to the tune of 15%+during the second quarter of 2021. 

The company’s latest acquisition is a$165 million precious metals stream on gold and silver produced in a Peruvian mine. Experts say there’s at least scope for a full 40 years there regarding the planned mining life of the newly acquired asset. 

If we pay heed to S&P Global Market Intelligence, FNV stock has 9 Buy calls versus 9 holds. 

Coeur Mining 

Coeur Mining, a diversified precious metals producer, employs 2000+ people and operates five mines in North America. The company share price has shown a spectacular rise since March 2020, the impetus being rising commodity prices and operations resumption in the latter half of the year. 

Certain experts expect a 13% upside from current levels. Operational results from the latter half of the previous year have been stupendous, asserts this source. Even the exploration results were excellent, giving much hope in conjunction with the Rochester expansion. 

West Fraser Timber

West Fraser Timber is a conspicuous entry among the high-potential commodity stocks. Who would have thought timber would have gained such importance? The Canadian company is likely to benefit from the prevailing inflationary environment. WFG shares have rocketed in their appreciation – 280%+ over the last 12 months. Despite relatively quiescent 2021, experts can see inklings of a high upside here. 

The main factors behind the better than expected earnings have been increased Chinese demand combined with surprisingly high numbers out of lumber and ‘oreiented strand board’ (OSB). 

As per the expert assessment, OSB and lumber prices are currently trading at nearly three times their historical averages, resulting in high free cash flow generation for the commodities. 

The Bottom line: commodity stocks

With renewed interest in revamping the American infrastructure landscape, there’s plenty of interest in how government stimuli and bettering employment rates will play out. This is the right environment for the continued growth of the commodities sector, too. We cannot gainsay that construction and building activity is on the rise. Mining is riding a high wave. Commodity stocks are all set to bear out their time-tested reputation of being a good hedge against inflation.