1. Hudbay Minerals Inc. (NYSE:HBM)
Forward P/E Ratio: 11.2
Earnings Growth This Year: 32.29%
Analyst Upside Potential: 47.97%
Hudbay Minerals Inc. (NYSE:HBM) is a Canadian company that focuses on mining copper. It operates in several countries, including Canada, Peru, and the United States. It operates three main mines including, Constancia Mine, Snow Lake Operations, and Copper Mountain Mine. In addition, the company is developing new copper mines and projects including, Copper World in Arizona, Mason Project in Nevada, and Llaguen Project in Peru.
In 2024, Hudbay Minerals Inc. (NYSE:HBM) achieved a record annual revenue of $2.021 billion and adjusted EBITDA of $822.5 million. This was driven by exceptional production levels and strong cost management. The gold production exceeded expectations, while copper and silver outputs increased by 5% and 11%, respectively, compared to 2023. Management noted that the operational efficiencies in Peru and Manitoba, along with advancements at the Copper Mountain mine, contributed significantly to these results. Looking ahead the company anticipates stable copper production with competitive margins. It plans to invest in growth projects, including mill throughput enhancements in British Columbia and Peru, and further development of the Copper World project in Arizona. It is the best cheap Canadian stock to buy according to analysts.
L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:
“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”
While we acknowledge the potential of Hudbay Minerals Inc. (NYSE:HBM) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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