How Rio Tinto plc (ADR) (RIO) Measures up as a GARP Investment

With many of Rio Tinto plc (ADR) (NYSE:RIO)’s major commodity markets expected to record massive material surpluses in the coming years, many doubt whether the mining colossus can keep its head above water and deliver sizable earnings growth moving forwards. If management’s steps to streamline the company can continue apace, combined with a continued revival in the global economy, Rio Tinto could prove a particularly canny stock selection.

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As I have explained, Rio Tinto — like all natural resources plays — comes attached with a heightened risk profile. Drilling for oil and minerals mining is often a hit-or-miss business where the timing, and indeed quantities, of potential payloads are extremely unpredictable.

The article How Rio Tinto Measures up as a GARP Investment originally appeared on Fool.com is written by Royston Wild.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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