In this article, we discuss the 10 best zinc stocks to buy now. If you want to skip our detailed analysis of these companies, go directly to the 5 Best Zinc Stocks to Buy Now.
Amid the interest around gold, silver, and other precious metals, zinc seems to largely slip under the radar of investors. However, there are several reasons for paying more attention to the fourth-most used metal in the world after iron, aluminum, and copper. Zinc has a diverse range of uses in products like vaccines, auto manufacturing, electronics, production of rubber, and as an agent to prevent the rusting in iron or steel. Zinc prices have exploded over the past decade and could touch close to $3,000 per tonne within the next three years.
Ural Mining and Metallurgical Company, a top zinc producer based in Russia, claims that the demand for the metal is likely to outpace production growth in 2021, narrowing a surplus. In a study of the zinc industry, the Russian firm projects that zinc extraction at existing mines is expected to reach a peak by 2024, and a production deficit will likely follow the peak that will drive up the prices of zinc concentrates in the latter part of this decade. However, zinc products still face an uncertain and volatile post-pandemic market.
Some of the biggest names in the zinc industry that trade publicly on the stock market in the United States include Teck Resources Limited (NYSE: TECK), Hecla Mining Company (NYSE: HL), and Hudbay Minerals Inc. (NYSE: HBM). Teck Resources Limited (NYSE: TECK) stock has soared by over 12%, outperforming the S&P 500, since the firm posted a strong earnings report last month. Meanwhile, Hecla Mining Company (NYSE: HL) has also reported solid earnings for the first three months of 2021, increasing dividend by 50% to $0.03 per share annually.
Hudbay Minerals Inc. (NYSE: HBM) missed earnings and revenue targets set by the market for the first quarter of 2021, but has been making progress on other fronts that are expected to benefit the stock of the company in the long run. On May 18, the firm released the 18th annual sustainability report, underlining that over 50% of the energy consumption of the company in 2020 came from natural resources. The firm also reaffirmed a resolve to positively contribute to the Sustainable Development Goals (SDGs) of the United Nations.
The zinc industry is not the only economic sector that is evolving with the changing global priorities. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 best zinc stocks to buy now.
Best Zinc Stocks To Buy Now
10. Silvercorp Metals Inc. (NYSE: SVM)
Number of Hedge Fund Holders: 10
Silvercorp Metals Inc. (NYSE: SVM) is Canada-based precious metals company founded in 1991. It is ranked tenth on our list of 10 best zinc stocks to buy now. Silvercorp stock has offered more than 45% in returns to investors over the course of the past twelve months. The company mainly concentrates on the acquisition, exploration, and development of precious metals in China. Even though it is based in Canada, the firm is the largest silver producer in the Asian country. It also has interests in zinc-related products.
In earnings results for the fourth fiscal quarter, posted on May 20, Silvercorp Metals Inc. (NYSE: SVM) reported earnings per share of $0.04, in line with market estimates. The revenue over the period was over $35 million, up 89% year-on-year.
At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $30 million in Silvercorp Metals Inc. (NYSE: SVM), down from 12 the preceding quarter worth $51 million.
Just like Teck Resources Limited (NYSE: TECK), Hecla Mining Company (NYSE: HL), and Hudbay Minerals Inc. (NYSE: HBM), Silvercorp Metals Inc. (NYSE: SVM) is one of the best zinc stocks to buy now.
9. Orla Mining Ltd. (NYSE: ORLA)
Number of Hedge Fund Holders: 2
Orla Mining Ltd. (NYSE: ORLA) is a Canada-based mining company founded in 2007. It is placed ninth on our list of 10 best zinc stocks to buy now. Orla stock has offered investors returns exceeding 98% in the past year. The company primarily engages in the acquisition, exploration, and development of mineral properties, with interests in metals such as gold, silver, lead, zinc, and copper, among others. It has stakes in mining projects in Mexico and Canada in addition to Canada and the United States.
On May 13, Orla Mining Ltd. (NYSE: ORLA) reported quarterly earnings results, posting earnings per share of -$0.05 and a cash balance of over $31 million for the first three months of 2021.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $931,000 in Orla Mining Ltd. (NYSE: ORLA), up from 2 in the previous quarter worth $8.9 million.
Just like Teck Resources Limited (NYSE: TECK), Hecla Mining Company (NYSE: HL), and Hudbay Minerals Inc. (NYSE: HBM), Orla Mining Ltd. (NYSE: ORLA) is one of the best zinc stocks to buy now.
8. Solitario Zinc Corp. (NYSE: XPL)
Number of Hedge Fund Holders: 3
Solitario Zinc Corp. (NYSE: XPL) is a Colorado-based mining company founded in 1984. It is ranked eighth on our list of 10 best zinc stocks to buy now. The company stock has offered more than 115% in returns to investors over the past twelve months. The firm mainly concentrates on the development and exploration of zinc-related projects mostly in North and South America. It has stakes in mining properties in Alaska, Florida, and Peru, among other places in the Americas.
Solitario Zinc Corp. (NYSE: XPL) share price has soared by close to 272% since last year and is an early stage company with a low cash burn. Over the past twelve months, the firm has reported a 62% decrease in cash burn, extending the runway for the firm to get to revenue stages.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.1 million in Solitario Zinc Corp. (NYSE: XPL), up from 2 in the previous quarter worth $717,000.
7. Carpenter Technology Corporation (NYSE: CRS)
Number of Hedge Fund Holders: 14
Carpenter Technology Corporation (NYSE: CRS) is a Pennsylvania-based company that primarily engages in the steel business. It was founded in 1889 and is placed seventh on our list of 10 best zinc stocks to buy now. Carpenter stock has offered investors more than 105% in returns over the past year. Carpenter Technology Corporation (NYSE: CRS) engages in the development and selling of many metal alloys, as well as zinc-related products. Some of the products it markets include powder metals, stainless steels, alloy steels, and others.
In late April, Carpenter Technology Corporation (NYSE: CRS) posted earnings results for the third fiscal quarter, reporting earnings per share of -$0.54, beating market estimates by $0.03. The revenue over the period was over $350 million.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Carpenter Technology Corporation (NYSE: CRS) with 532,926 shares worth more than $21 million.
6. Wheaton Precious Metals Corp. (NYSE: WPM)
Number of Hedge Fund Holders: 28
Wheaton Precious Metals Corp. (NYSE: WPM) is a Canada-based precious metals company founded in 2004. It is ranked sixth on our list of 10 best zinc stocks to buy now. Wheaton stock has offered investors returns exceeding 34% over the past three months. The company is primarily interested in the development and selling of metals like gold, silver, palladium, and cobalt, among others. It has stakes in over 20 mining projects and is assisting in the development of another seven.
On May 6, Wheaton Precious Metals Corp. (NYSE: WPM) posted earnings results for the first quarter of 2021, reporting earnings per share of $0.35, missing market estimates by $0.02. The revenue over the period was over $320 million, up 27% year-on-year.
At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $439 million in Wheaton Precious Metals Corp. (NYSE: WPM), down from 34 in the previous quarter worth $755 million.
Just like Teck Resources Limited (NYSE: TECK), Hecla Mining Company (NYSE: HL), and Hudbay Minerals Inc. (NYSE: HBM), Wheaton Precious Metals Corp. (NYSE: WPM) is one of the best zinc stocks to buy now.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Wheaton Precious Metals Corp. (NYSE: WPM) was one of them. Here is what the fund said:
“The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.”
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Disclosure: None. 10 Best Zinc Stocks To Buy Now is originally published on Insider Monkey.
