In this article, we will look at the 5 best commodity stocks to invest in. If you want to see our detailed analysis of these stocks and the commodities industry, then you can go directly to the 11 Best Commodity Stocks To Invest In.
5. Cleveland-Cliffs Inc (NYSE:CLF)
Number of Hedge Fund Holders: 35
Cleveland-Cliffs Inc. (NYSE:CLF) operates as a flat-rolled steel producer in North America. It also manufactures iron ore pellets. Cleveland-Cliffs Inc. (NYSE:CLF) was founded in 1847 and is headquartered in Cleveland, Ohio. The company’s stock has gained 18% over the past twelve months.
By the end of the third quarter of 2021, Insider Monkey identified 35 hedge funds that had stakes in Cleveland-Cliffs Inc (NYSE:CLF). The total value of these stakes was over $682.05 million. As of February 14, 2022, Ken Fisher of Fisher Asset Management was the lead stakeholder in Cleveland-Cliffs Inc (NYSE:CLF). The fund owns more than 12.5 million shares of stock, which are worth $272.2 million.
On 8th November, GLJ Research analyst Gordon Johnson raised his price target on Cleveland-Cliffs Inc (NYSE:CLF) to $36.06 from $28.35 and reiterated a Buy rating on the shares.
4. Barrick Gold Corporation (NYSE:GOLD)
Number of Hedge Fund Holders: 41
Barrick Gold Corporation (NYSE:GOLD) engages in the exploration, mine development, production, and sale of gold and copper properties. The company was founded in 1983 and is headquartered in Toronto, Canada.
Out of the 867 hedge funds we track at Insider Monkey, 41 held stakes in Barrick Gold Corporation (NYSE:GOLD) by the end of the third quarter of 2021. The total value of these stakes was over $917.69 million.
Jean-Marie Eveillard’s First Eagle Investment Management was the top shareholder of Barrick Gold Corporation (NYSE:GOLD) as of this February. The total stake of the fund in Barrick Gold Corporation (NYSE:GOLD) was $510.61 million, which accounts for 1.27% of its investment portfolio.
Ariel Investments mentioned Barrick Gold Corporation (NYSE:GOLD) in its second-quarter 2021 investor letter. Here’s what the firm had to say about the company:
“We re-initiated a position in Barrick Gold Corp. (GOLD) in the quarter. Its shares fell -5.56% from our initiation to the end of the quarter as the price of gold trended lower. Gold exceeded $2,000 per ounce in 2020 but has since declined to approximately $1,812 per ounce. Barrick’s shares have often traded at elevated PE multiples. However, at the current reduced stock price, it is trading at a PE multiple of only 16 times next year’s earnings, an attractive opportunity in our opinion, given our expectation of higher inflation and gold’s historic role as an inflationary hedge.”
3. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 44
Alcoa Corporation (NYSE:AA) produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company operates through three segments: Bauxite, Alumina, and Aluminum. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania.
In November 2021, Wolfe Research analyst Timna Tanners initiated coverage of Alcoa Corporation (NYSE:AA) with an Outperform rating and a $63 price target.
By the end of the third quarter, Insider Monkey found Alcoa Corporation (NYSE:AA) to be a part of 44 hedge fund portfolios. The total stakes that these funds had in the company are worth $1.74 billion, up from $1.15 billion the prior quarter with 44 positions. Of the 44 hedge funds, Ken Fisher’s Fisher Asset Management had the largest stake in the company. As of this February, the fund’s stake in the company was a hefty $378.5 million, which covers 0.21% of Fisher Asset Management’s 13F portfolio.
2. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 48
Newmont Corporation (NYSE:NEM) engages in the production and exploration of gold, copper, silver, zinc, and lead. The company has operations in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. Newmont Corporation (NYSE:NEM) was founded in 1916 and is headquartered in Denver, Colorado.
Jean-Marie Eveillard’s First Eagle Investment Management, of the 47 other hedge funds, has the majority stake in Newmont Corporation (NYSE:NEM) as of the third quarter. First Eagle Investment Management owns over 17.4 million shares of the stock, which amounts to a stake value of $1.08 billion.
First Eagle Investment Management published its third-quarter 2021 investor letter in which it mentioned Newmont Corporation (NYSE:NEM). Here’s what the experts at First Eagle had to say about the company:
“The largest gold miner in the world, Newmont shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 66
Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores copper, gold, molybdenum, silver, and other metals, as well as oil and gas. The stock has gained 32% over the last 12 months. Freeport-McMoRan Inc. (NYSE:FCX) was incorporated in 1987 and is headquartered in Phoenix, Arizona.
Last November, Wolfe Research analyst Timna Tanners initiated coverage of Freeport-McMoRan Inc. (NYSE:FCX) with an Outperform rating and gave the company a $47 price target.
By the end of the third quarter of 2021, 66 hedge funds out of 867 held stakes in Freeport-McMoran Inc. (NYSE:FCX). The total value of these stakes was $3.21 billion. As of February 14, 2022, Ken Fisher’s Fisher Asset Management was the top shareholder in the company by total stakes. Mr. Fisher’s total stakes in Freeport-McMoran Inc. (NYSE:FCX) are an astounding $2.03 billion.
You can also take a look at 15 Best Energy Stocks to Buy Now and 10 Largest Agricultural Companies.
