Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, international miner Rio Tinto (NYSE: RTP) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Rio Tinto's business, and see what CAPS investors are saying about the stock right now.
Rio Tinto facts
|
Headquarters (founded)
|
London (1873)
|
|
Market Cap
|
$53.7 billion
|
|
Industry
|
Diversified Metals & Mining
|
|
TTM Revenue
|
$44.8 billion
|
|
Management
|
CEO Tom Albanese (since 2007)
CFO Guy Elliott (since 2002)
|
|
Return on Capital (average last three years)
|
21.5%
|
|
Dividend Yield
|
3.3%
|
|
Competitors
|
BHP Billiton (NYSE: BHP)
Freeport-McMoRan Copper & Gold (NYSE: FCX)
|
|
CAPS members bullish on RTP also bullish on
|
Vale (NYSE: RIO)
Transocean (NYSE: RIG)
|
|
CAPS members bearish on RTP also bearish on
|
Ford Motor (NYSE: F)
General Motors (NYSE: GM)
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 94% of the 153 All-Star members who have rated Rio Tinto believe the stock will outperform the S&P 500 going forward. These bulls include sberberick and britpick, both of whom are ranked in the top 10% of our community.
In late September, sberberick had this to say of Rio Tinto: "Well run company that is diversified in minerals and energy. This stock has been killed, at this price this stock is a winner."
A pitch from britpick last month shares that contrarian spirit, citing the proposed takeover by rival BHP Billiton as an attractive "option" embedded in Rio Tinto's stock price:
Will get a short term bump in price if the BHP bid goes ahead. If not, Rio Tinto still has a healthy pipeline of prospects and projects that will deliver longer term value to this global miner as China and India come back from the global recession that is likely to last through 2009.
What do you think about Rio Tinto, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.
Terms & Conditions
RSS Headlines
Fool UK