Evaluating P/E Ratios and Revenue Growth of 5 Top Basic Materials Stocks

Wall St. Watchdog examines a stock screen that looks at large cap stocks in the Basic Materials Sector.  Its criteria are:

  • The stock trades on a US exchange
  • The company’s market capitalization is at least $50 billion

We take a look at the company’s current P/E (excluding extraordinary items) and its year-over-year revenue growth.  Following is information on these companies:

  • Rio Tinto plc (ADR) (NYSE:RIO): This company operates in the Basic Materials sector. Its current P/E (excluding extraordinary items) is 9.83424. The stock recently traded at $72.32. Its revenue for the most recent fiscal year was $56,576,000,000, which represents a change of 35.27% over the previous year. About the company: Rio Tinto PLC is an international mining company. The Company has interests in mining for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium dioxide feedstock, diamonds, talc and zircon. Rio Tinto’s various mining operations are located in Australia, New Zealand, South Africa, the United States, South America, Europe, and Indonesia.
  • Freeport-McMoRan Copper + Gold Inc. (NYSE:FCX): This company operates in the Basic Materials sector. Its current P/E (excluding extraordinary items) is 11.32774. The stock recently traded at $52.90. Its revenue for the most recent fiscal year was $18,982,000,000, which represents a change of 26.21% over the previous year. About the company:  Freeport-McMoRan Copper & Gold Inc., through its subsidiary, is a copper, gold (NYSE:GLD) and molybdenum mining company. The Company primarily mines for copper and owns mining interests in Chile and Indonesia. Freeport-McMoRan Copper & Gold also, through a subsidiary, is involved in smelting and refining of copper concentrates. Competitors to Watch: Newmont Mining Corp. (NYSE:NEM), Rio Tinto (NYSE:RIO), Southern Copper Corp. (NYSE:SCCO), Taseko Mines Limited (AMEX:TGB), HudBay Minerals Inc. (TSE:HBM), and Royal Gold, Inc. (NASDAQ:RGLD).
  • E.I. du Pont de Nemours + Company (NYSE:DD): This company operates in the Basic Materials sector. Its current P/E (excluding extraordinary items) is 16.26082. The stock recently traded at $54.05. Its revenue for the most recent fiscal year was $32,733,000,000, which represents a change of 19.78% over the previous year. About the company:  E. I. du Pont de Nemours and Company is a global chemical and life sciences company, with businesses that include agriculture and industrial biotechnology, chemistry, biology, materials science and manufacturing. The Company operates globally and offers a wide range of products and services for markets including agriculture and food, building and construction, electronics and communications. Competitors to Watch: The Dow Chemical Company (NYSE:DOW), FMC Corporation (NYSE:FMC), Monsanto Company (NYSE:MON), 3M Company (NYSE:MMM), Syngenta (NYSE:SYT), PPG Industries (NYSE:PPG), PolyOne Corporation (NYSE:POL), Rockwood Holdings (NYSE:ROC) and Ashland Inc. (NYSE:ASH).
  • BHP Billiton plc (ADR) (NYSE:BBL): This company operates in the Basic Materials sector. Its current P/E (excluding extraordinary items) is 17.15389. The stock recently traded at $78.43. Its revenue for the most recent fiscal year was $52,798,000,000, which represents a change of 5.15% over the previous year. About the company:  BHP Billiton Plc is an international resources company. The Company’s principal business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper concentrate, as well as petroleum exploration, production, and refining.
  • BHP Billiton Limited (ADR) (NYSE:BHP): This company operates in the Basic Materials sector. Its current P/E (excluding extraordinary items) is 20.69709. The stock recently traded at $94.63. Its revenue for the most recent fiscal year was $52,798,000,000, which represents a change of 5.15% over the previous year. About the company:  BHP Billiton Limited is an international resources company. The Company’s principal business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper concentrate, as well as petroleum exploration, production, and refining.

(Note: Selected financial data are sourced from screener.co.  All data are assumed to be accurate.)

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