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Fortescue Metals – A strong buy for 2024

Iron Ore
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 Fortescue Metals ASX  Fortescue Metals ASX

Fortescue Metals, a prominent success story in the growth of the Australian iron ore industry, is involved in the exploration and mining of iron ore. Fortescue Metals Group Ltd. (FSUGY) could be a wise addition to your portfolio, as it has earned a Zacks Rank #1 (Strong Buy). The upward trend in profit projections, shown in this upgrade, is one of the primary reasons driving stock values. Fortescue Metals ASX has a VGM Score of D, allowing you to focus on the stocks most closely align with your investing style. The VGM Score is a weighted average of the individual Style Scores. Zacks rating for Fortescue indicates optimism about its earnings outlook, leading to a company stock price increase shortly. 

Fortescue is a renowned integrated green technology, energy, and metals firm in Western Australia. Throughout the previous 12 months, the share price of Fortescue Metals Group Limited (ASX: FMG) has increased. While earnings in the Metals & Mining sector grew at 22.2% yearly, Fortescue’s earnings have been expanding at an average annual rate of 22.2%. The average annual growth rate of revenues has been 17.8%. Fortescue has net margins of 28.4% and a return on equity of 26.6%.

Fortescue Metals ASX Share Price 2024

The past months have been exciting for the share price of Fortescue (ASX: FMG), as it has soared by 21%. For several reasons, 2024 might be the most significant year for the ASX resources to be shared. Some of the reasons include – 

  • 48.7 million tonnes (Mt) of iron ore were shipped in Q2 FY24, which helped to make up 94.6 Mt of shipments in H1 FY24, the second-highest first-half shipments in Fortescue’s history. 
  • For the first time, the company transported iron ore from a port outside of Australia during the Belinga Iron Ore Project in Gabon.
  • Installed Australia’s first electric excavator at Cloudbreak, marking a critical turning point in the company’s decarbonisation efforts. 

“We continue to deliver strong operational performance while making tangible progress towards our ambitious decarbonisation and green energy targets,” stated Dino Otranto, CEO of Fortescue Metals. We exceeded our second-highest first-half-year exports of 94.6 million tonnes of iron ore this quarter, shipping 48.7 million. Fortescue continues to see robust demand for its range of iron ore products, and this quarter’s second shipment of magnetite marked our successful entry into the higher-grade market via Iron Bridge. It’s been an incredible quarter as well. We managed costs, maintained safety protocols, and expanded into the energy, metals, and green technology industries simultaneously.

Fortescue Metals Group Ltd.’s level was increased in response to increasing profit forecasts that demonstrate noticeable enhancements in the company’s core strengths. The stock should also rise because investors notice this positive corporate trend associated with Fortescue Metals.

Bottom Line

One of the leading iron ore shares on the ASX, Fortescue Metals boasts a sizable portfolio of prospective international projects that have the potential to generate green ammonia and green hydrogen in the future. Additionally, it wants to lead the global battery market for large and sophisticated machines. Analyst projections for Fortescue Metals Group Ltd. have grown over time. To estimate revisions, Fortescue Metals Group Ltd. has risen to a Zacks Rank #1, placing it in the top 5% of Zacks-covered stocks. This implies that a rise in the stock may be ahead. This company is expected to earn $2.99 per share for its fiscal year ending in June 2024, a reduction of -3.9% from the prior year. 

Only the top 5% of Zacks-covered companies are rated as “Strong Buys,” with the remaining 15% receiving a “Buy” rating, regardless of the state of the market. Zacks is mainly recognised for its wide range of consensus projections for earnings per share (EPS). The business has expanded into similar fields more recently, offering research reports, summaries of recommendations on different companies, funds, stock prices, charts, tables, and various other financial tools and data.

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