Cliffs Natural Resources Inc (CLF) & More: These Resource Stocks Could Return As Much As 70%

Foolish bottom line

Resource companies represent a compelling buying opportunity, but this doesn’t come without risk. Conservative investors will want to wait for evidence that the slowdown in economic activity isn’t too severe. Another development to look for is consolidation in the industry. As weaker players reduce their output, or are taken over, existing companies will benefit. Newmont Mining Corp (NYSE:NEM) and Cliffs Natural Resources Inc (NYSE:CLF) both offer a rich dividend, while Alcoa offers the least (shares yield 1.48%). Alcoa is also the most expensive on a forward P/E valuation basis, trading at forward P/E of around 10. Cliffs and Newmont are valued at a forward P/E of 7.4 and 7.0, respectively.

The article These Resource Stocks Could Return As Much As 70% originally appeared on Fool.com and is written by Chris Lau.

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