Its been a very poor six months for investors in Glencore (LSE: GLEN), with the diversified commodity business seeing its share price fall by 20%, as falling commodity prices have weighed heavily on investor sentiment. However, even if a deal to acquire Rio Tinto does not materialise, Glencore could see its share price rise at a rapid rate, since it offers truly staggering growth potential.
For example, over the next two years, Glencore is expected to increase its bottom line by 42% and 49% respectively. This means that, in 2016, its net profit is due to be 112% higher than it was in 2014, which would clearly be a superb result. And, with Glencore trading on a price to earnings growth (PEG) ratio of just 0.2, its shares seem to offer excellent value for money, as well as a very wide margin of safety.
With Anglo Americans (LSE: ALL) share price having fallen by 23% in the last year, it has suddenly become a very appealing income stock. For example, it currently yields a very attractive 5% from a dividend that is well-covered by profit. In fact, Anglo American has a dividend coverage ratio of 1.6, so that if commodity prices fall further then it should have sufficient capacity to make payments to shareholders.
In addition to being a viable income stock, Anglo American also offers stunning growth potential. For example, its bottom line is forecast to rise by 42% next year, which puts it on an ultra-low PEG ratio of just 0.2.
Since 2001, Fresnillos (LSE: FRES) bottom line has fallen by a staggering 93%, as weaker commodity prices have hurt the worlds largest silver producer. Thats clearly disappointing and, as such, it is of little surprise that the companys share price has sunk by 24% in the last year alone.
However, it is set to make a major comeback. For example, Fresnillos bottom line is forecast to grow at a rapid rate over the next two years. This puts its shares on a PEG ratio of just 0.4, which indicates that they offer growth at a very reasonable price.
Certainly, further weakness in the silver price would hurt its performance but, with such a wide margin of safety, Fresnillo looks to be a strong, albeit risky, buy at the present time.
On the face of it, Antofagasta (LSE: ANTO) is a rather unappealing company investment at the present time. Thats because it trades at a premium to the FTSE 100, with it having a price to earnings (P/E) ratio of 16.8 versus 16 for the wider index. And, with its bottom line set to grow by just 2% this year, its near-term outlook is somewhat disappointing.
However, looking at next year, Antofagasta starts to make sense as an investment. Thats because it is forecast to increase its earnings by 38%, which puts it on a PEG ratio of just 0.4 and indicates that its shares could begin to see investor sentiment pick up as we move through the year. As such, now could be a great time to buy a slice of it.
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