In this article, we will look at the top 5 zinc stocks picked by hedge funds for 2022. If you want more zinc stock ideas you can look at Top 10 Zinc Stocks Picked By Hedge Funds for 2022.
5. HudBay Minerals Inc. (NYSE:HBM)
Number of Hedge Fund Holders: 17
Hudbay Minerals Inc. (NYSE:HBM) operates as a diversified mining company and explores base and precious metals in North and South America. The company produces copper, gold, silver, and zinc metals. Hudbay Minerals Inc. (NYSE:HBM) is a top zinc stock pick among elite hedge funds. According to Insider Monkey’s database, 17 hedge funds were long HudBay Minerals Inc. (NYSE:HBM) at the close of Q4 2021. The total stakes of these funds were valued at $360.19 million, up from $260.60 million in the prior quarter, when 13 funds were long HBM.
On February 23, 2022, Hudbay Minerals Inc. (NYSE:HBM) reported its fourth quarter 2021 results. The company registered EPS of $0.13 during the period, beating estimates by $0.01. Moreover, the company’s revenue came to $425.17 million, up 31.92% year-over-year. Earlier this month, Raymond James analyst Brian MacArthur raised his price target on Hudbay Minerals Inc. (NYSE:HBM) to CAD14 ($11.01) from CAD13 ($10.23) and maintained an ‘Outperform’ rating on the shares.
As of December 31, 2021, GMT Capital owns more than 32 million shares of Hudbay Minerals Inc. (NYSE:HBM). The fund upped its stake in the company by 2% during Q4, giving it a position worth $232.44 million at the end of 2022.
4. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 19
Hecla Mining Company (NYSE:HL) discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company mines silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold.
Hecla Mining Company (NYSE:HL) reported its fourth quarter 2021 financial results in February. The company generated revenue of $185.08 million and registered EPS of $0.08 during the quarter, beating EPS estimates by $0.05. Hecla Mining Company (NYSE:HL) has been experiencing high trading volumes and is gaining momentum in the market, with the stock returning 17.44% year-to-date.
On April 12, Hecla Mining Company (NYSE:HL) announced its silver and gold production for the first quarter of 2022. The company reported silver production of 3.3 million ounces, up 3% over the fourth quarter of 2021, alongside gold production of over 41,000 ounces. Moreover, the company reported that lead and zinc production was in-line with the prior quarter. Shortly after, Roth Capital analyst Joe Reagor raised his price target on Hecla Mining Company (NYSE:HL) to $6.50 from $6.25, but downgraded the stock to ‘Neutral’ from ‘Buy’, noting that the company’s Q1 production did not meet market consensus but that this was offset by surging base metal prices.
19 hedge funds held long positions in Hecla Mining Company (NYSE:HL) at the end of the fourth quarter of 2021, up from 15 a quarter earlier. The collective stakes of these hedge funds came to $128.04 million, up from $101.85 million in the prior quarter.
Israel Englander’s Millennium Management increased its stake in Hecla Mining Company (NYSE:HL) by 291% during Q4, giving it more than 8.6 million shares of the stock worth $45.32 million as of December 31.
3. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 24
Wheaton Precious Metals Corp. (NYSE:WPM) is a Canadian multinational precious metal streaming company. The company strategically invests in and secures deals with precious metals mining companies to gain access to various commodities such as zinc, copper, iron, gold, steel, and lead, among others. Wheaton Precious Metals Corp. (NYSE:WPM) boasts a streaming portfolio of metal purchase agreements with 24 operating mines along with eight development projects as of April 2022.
In March, Wheaton Precious Metals Corp. (NYSE:WPM) released its earnings report for the fourth quarter of 2021. The company delivered earnings per share of $0.29 and generated revenue of $278.20 million during the period. On April 21, Barclays analyst Matthew Murphy raised his price target on Wheaton Precious Metals Corp. (NYSE:WPM) to $49 from $45 and maintained an ‘Equal Weight’ rating on the shares. Wheaton Precious Metals Corp. (NYSE:WPM) shares are up 12.46% over the past year.
Wheaton Precious Metals Corp. (NYSE:WPM) was a part of 24 hedge funds’ portfolios at the close of the fourth quarter of 2021, with the total stakes of these funds valued at $490.69 million. As of December 31, 2021, First Eagle Investment Management is one of the most prominent shareholders in Wheaton Precious Metals Corp. (NYSE:WPM), owning over 16.4 million shares of the stock. The large investment accounts for 1.76% of the hedge fund’s Q4 13F portfolio.
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Vale S.A. (NYSE:VALE) is one of the largest metal mining companies in the world, operating through its Ferrous Minerals and Base Metals segments. In February, Vale S.A. (NYSE:VALE) reported earnings per share of $1.46 and revenue of $12.50 billion for the fourth quarter of 2021, beating EPS estimates by $0.65. Vale S.A. (NYSE:VALE) is one of the few zinc stocks that comes with hefty dividend payouts, boasting a forward yield of 15.98%.
On March 3, HSBC analyst Jonathan Brandt upgraded Vale S.A. (NYSE:VALE) to ‘Buy’ from ‘Hold’, while upping his price target on the stock to $21.50, up from $17.25. The analyst believes the Ukraine conflict will keep metal prices high given its ongoing supply-chain disruptions. Brandt adds that prices for the main metals of Vale S.A. (NYSE:VALE), including iron ore, copper, and nickel, will continue to rise driven by supply issues and strong demand.
By the end of the fourth quarter of 2021, 25 hedge funds held stakes in Vale S.A. (NYSE:VALE), with the total value of those stakes coming in at $1.71 billion. Of those 25 funds, Fisher Asset Management was the largest shareholder, having a $434.32 million position in the company.
Miller Value Partners mentioned Vale S.A. (NYSE:VALE) in its third-quarter 2021 investor letter. Here are the fund’s comments:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
1. Teck Resources Ltd (NYSE:TECK)
Number of Hedge Fund Holders: 40
Teck Resources Ltd (NYSE:TECK) engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through five segments: Steelmaking Coal, Copper, Zinc, Energy, and Corporate.
On March 31, Teck Resources Ltd (NYSE:TECK) announced that it has agreed to satisfy the remaining purchase price for Bunker Hill Mining’s Pend Oreille Mill. Bunker Hill Mining has also agreed to grant Teck Resources Ltd (NYSE:TECK) an exclusive option to acquire 100% of the zinc and lead concentrate production from the Bunker Hill Mine for an initial term of five years after the mine has commenced production of concentrates.
In February, Teck Resources Ltd (NYSE:TECK) reported that its revenue for the fourth quarter of 2021 came to $3.44 billion, up 70.38% year-over-year, while its earnings per share of $1.98 beat estimates by $0.11. Teck Resources Ltd (NYSE:TECK) has delivered 65.07% returns to investors over the past 12 months.
Barclays analyst Matthew Murphy raised his price target on Teck Resources Ltd (NYSE:TECK) to CAD55 ($43.27) from CAD40 ($31.47) in April and reiterated an ‘Equal Weight’ rating on the shares. Murphy believes the demand for copper and gold will soar even the amidst supply issues triggered by the current geopolitical situation.
Hedge funds are betting big on Teck Resources Ltd (NYSE:TCK). At the close of the fourth quarter of 2021, 40 hedge funds were long TCK, with stakes valued at $1.62 billion. Soroban Capital Partners was the most prominent shareholder in Teck Resources Ltd (NYSE:TCK) among that group, owning more than 11 million shares worth $318.59 million.
For more compelling commodity stocks to consider adding to your portfolio, check out the 10 Best Copper Stocks to Buy Now and the 10 Best Battery Stocks to Buy Now.
