Why Sibanye Stillwater Ltd. (SBSW) Went Up Last Week?

We recently published a list of Last Week’s 10 Best-Performing Stocks. In this article, we are going to take a look at where Sibanye Stillwater Ltd. (NYSE:SBSW) stands against other last week’s best-performing stocks.

Ten firms outperformed Wall Street’s three major indices over the past week, clocking in double-digit gains on the back of a flurry of company developments that sparked buying appetite.

On a week-on-week basis, the Dow Jones rallied by 1.19 percent, the S&P 500 increased 0.5 percent, and the tech-heavy Nasdaq inched up 0.16 percent.

Meanwhile, 10 firms finished stronger with gains of 10 to 20 percent. In this article, let’s explore the names of last week’s best performers and the reasons behind their rallies.

To come up with the list, we only considered the stocks with at least 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)

Despite booking a 0.23-percent dip on Friday versus its share price on Thursday, Sibanye Stillwater still managed to register an 11.19-percent gain week-on-week, ending Friday at $4.37 versus the $3.93 registered on March 14.

Trading in the company last week was generally fueled by RBC Capital Markets’ upgrade of SBSW’s rating to “outperform” from “sector perform” previously. It also increased its price target to $5.3 from $4.7 previously, representing a 21-percent upside from its closing price on Friday.

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, SBSW is expected to perform better than the average return of the sector over the medium term.

Towards the end of the week, investors sold off positions in SBSW to pull the company’s day-on-day stock price.

Overall, SBSW ranks 9th on our list of last week’s best-performing stocks. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

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