Why Sibanye Stillwater Ltd. (SBSW) Soared On Tuesday?

We recently published a list of 10 Stocks That Led Tuesday’s Charge. In this article, we are going to take a look at where Sibanye Stillwater Ltd. (NYSE:SBSW) stands against other stocks that led Tuesday’s charge.

The stock market finished Tuesday’s trading in the red territory anew, erasing two consecutive days of gains, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq registered the biggest drop among Wall Street’s main indices, declining 1.71 percent, followed by the S&P 500 with 1.07 percent, and the Dow Jones by 0.62 percent.

Despite the decline, ten companies showed off resilience during the session, finishing with modest gains. In this article, we have named the 10 top performers and detailed the reasons behind their gains.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

A mining truck loaded with precious metals in an open pit mine.

Sibanye Stillwater Ltd. (NYSE:SBSW)

Sibanye Stillwater rallied for a third straight day on Tuesday, adding 5.62 percent to close at $4.32 apiece as investors took path from a recent rating upgrade for the company from an investment firm.

In its report, RBC Capital Markets said it upgraded SBSW’s stock rating to “outperform” from “sector perform” previously while increasing its price target to $5.3 from $4.7. The new price target represented a 22.68 percent upside from SBSW’s closing price on Tuesday.

According to RBC, SBSW shares have underperformed against other platinum group metals (PGM) and gold producers by 10 percent and 20 percent, respectively, making the company already undervalued.

According to the investment firm, it expects SBSW to perform better than the average return of the sector over the medium term.

Overall, SBSW ranks 6th on our list of stocks that led Tuesday’s charge. While we acknowledge the potential of SBSW as an investment, our conviction lies in the belief that some 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 as promising as SBSW but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.