Rio Tinto Stock Rises 80%; Is It Still Undervalued?
Despite an impressive rise of 80% from its March lows of this year, at the current price of $65 per share, Rio Tinto stock (NYSE: RIO) still has some upside left. RIO stock rallied from $36 to $65 off its recent bottom, compared to the S&P 500 which increased 60% from its recent lows. The stock has been able to beat the broader market in the last 8 months on the back of recovery in iron ore prices with the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. In addition, with the lockdowns being lifted gradually, we are set to see further rise in iron ore demand and reduction of supply constraints. This will drive faster growth in revenues and margins, thus providing a potential further upside of more than 10% from its current level. Our dashboard What Factors Drove 24% Change In Rio Tinto Stock Between 2017 And Now? provides the key numbers behind our thinking.
