Mining giant Glencore (GB:GLEN) and financial company Prudential (GB:PRU) of the UK have scored a “Perfect 10” on the TipRanks Smart Score Tool. Both these companies have witnessed a good run on the stock market in the last six months, and analysts are confident of further upside.
Amid the volatility in the global financial markets, the various tools from TipRanks are helping investors choose and compare different stocks. Among those, the TipRanks Smart Score is widely used by investors to pick stocks with the potential to beat the market. Each stock is assigned a score based on an analysis of eight different factors. Stocks with a score of eight, nine, or ten are considered to outperform.
Let’s have a closer look at them.
Glencore is a global natural resources company with a diversified portfolio. The company is engaged in the production and trading of commodities like copper, nickel, cobalt, zinc, and more.
Glencore’s stock has gained around 46% in the last year, driven by higher commodity prices. The stock was among the top performers on the FTSE 100 index.
Analysts are extremely bullish on the stock for two main reasons. Firstly, the company has exposure to some fast-growing commodities in its portfolio, which gives it an upper hand in terms of risk mitigation. Second, Glencore is a great dividend payer and an absolute must for income investors. The company has a dividend yield of 5.62%, as compared to the industry average of 1.63%.
The company’s operational performance in 2022 was hit by weather conditions in Australia and other supply chain disruptions. As a result, the company has reduced its overall production numbers for the full year. However, the company’s long-term prospects are promising, and its coal and copper production is regarded as the best in the industry. The company expects 110 million tonnes of coal production in 2023.
Ahead of its Q4 earnings on February 15, analysts have reiterated their Buy ratings on the stock and see a short-term hit to revenues and share price.
Chris LaFemina from Jefferies said, “The coal cushion is defensive. The copper leverage should lead to a significant upside to the Glencore share price when the global economy eventually recovers from the ongoing/upcoming slowdown.”
Glencore Share Price Forecast
According to TipRanks’ analyst rating consensus, Glencore’s stock has a Strong Buy rating.
The GLEN share price forecast is 639.58p, which is 18% higher than the current price level.
Prudential is a UK-based company that provides insurance, asset management, and retirement services to around 19 million customers in Asia and Africa.
Over the last six months, Prudential’s stock has gained around 38%. The analysts are confident in the stock based on its product mix, distribution model, and geographic presence, which have helped it grow its business even during the pandemic.
During the first half of 2022, APE (annual premium equivalent) sales grew by 6% to $2.2 billion. The profit from the new business was down by 7%, mainly due to higher interest rates. The company is confident of posting better numbers for its second half and in 2023, as the markets in Asia and Africa stabilize and return to normal trading conditions.
Talking about the capital returns, analysts are highly bullish on the stock, which justifies the score of 10 on the Smart Score.
Analyst Philip Kent from Jefferies has the highest target price on the stock at 1,900p, which has an upside of more than 40%. He has recently increased the target price from 1,625p while maintaining his Buy rating.
Is Prudential a Good Stock to Buy Now?
The Prudential stock has a Strong Buy rating on TipRanks, based on 13 Buy and one Sell recommendations.
The average PRU price target is 1,534.5p, which is 14% higher than the current price level.
Both Glencore and Prudential have well-established names in their respective industries. The companies remain positive about posting better numbers in their upcoming results, which has given confidence to investors as well as analysts.
This, along with their score of 10, makes them an attractive option for investors.