The iron ore price rally

Iron ore prices have remained firm in 2016. Year-to-date (or YTD), as of September 5, 2016, the benchmark iron ore prices have increased by 39%. This is despite the majority of market participants believing the contrary.

The stimulus provided by the Chinese government helped the demand side, while supply got somewhat deferred. Most analysts are still bearish (SPXS) on the medium- to long-term outlook for iron ore prices.

Iron Ore Price Rally Is Not Causing Excitement on Wall Street

Performances of iron ore miners

With stronger iron ore prices YTD, iron ore miners have recuperated from some of their losses. Cliffs Natural Resources (CLF) has outperformed, with a YTD rise of 243% as of September 2, 2016.

Fortescue Metal (FSUGY) and Vale (VALE) have risen by 162% and 77%, respectively. Rio Tinto (RIO) and BHP Billiton (BHP) (BBL) have risen by 6% and 13%, respectively.

Series overview

In this series, we’ll look at Wall Street analysts’ recommendations and ratings for these iron ore miners. It’s important to note that analysts’ estimates usually lag behind price movements, and we see upgrades when stocks have already risen. As for downgrades, they’re apparent when a company has already seen lower prices.

That being said, changes in analysts’ estimates are key drivers of short-term price movements. You should keep track of changes in analysts’ estimates because they offer insight into what the market expects from a given company.

We’ll start by looking at analysts’ ratings for BHP Billiton.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.38.64