Stock market

Revealed! One of the most popular growth, value, and dividend stocks to buy today

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Looking for the best growth stocks to buy? I think it’s one that might be too cheap to miss today.

Copper star

Investing in copper stocks can be a good idea as prices of the essential metal rocket. Metals of Central Asia. (LSE:CAML) is a company I am considering buying to increase my current exposure (I already own shares FTSE 100 Diversified miner Rio Tinto).

‘Dr Copper’ prices have risen 25% year-to-date on fresh supply concerns and signs of strong demand. And the rise of the red metal is unlikely to be a temporary phenomenon either. Experts believe we could be at the start of a multi-year bull run.

As Kathleen Brooks, research director at online broker XTB, comments:

The underlying story for copper is compelling: copper will be needed to help power all the additional electricity capacity that will be needed for the future AI revolution and electric vehicles. It’s a multi-year infrastructure build around the world, and copper is a key component.

cheap

Buying shares in mining companies is a risky way to play the copper market. Mining ore from the ground is a massively complex, unpredictable, and expensive business. And setbacks can take a big bite out of a miner’s earnings.

But I believe the risk is baked into Central Asia Metals’ rock-bottom valuation. Today it trades at a price-to-earnings-growth (PEG) ratio of 0.4. A reminder that any reading below indicates that the stock is undervalued.

City brokers are not expecting any profit-crushing issues. In fact, annual revenue is predicted to grow by 26% annually through 2024.

And Central Asia’s expected earnings pickup is not expected to be a short-lived thing. Analysts are also projecting the bottom line to grow by 15 percent in 2025.

7.4% profitable yield

I am also attracted to it. the aim Company due to its highly profitable production. It sits at a whopping 7.4% for the next two years.

To put this into context, the average forward dividend yield FTSE 100 And FTSE 250 The shares sit at 3.5% and 3.2% respectively.

It’s also important to note that I would earn zero dividends by investing in a copper ETF that simply tracks the price of the metal.

Profits from UK shares are never guaranteed. And Central Asia Metals’ forecast payout for 2024 and 2025 is just 1.2 times expected earnings.

However, a strong balance sheet means the payout forecast still looks strong. The business has no debt, and had $57.2 million in cash in the bank at the end of December.

A standard stock

There are many copper stocks on the London stock market that I can buy. But the potential for rapid growth, huge dividends, and great value make Central Asia Metals one of my favorites.

I also like the business because of its quality asset portfolio. It owns the Konrad copper mine in Kazakhstan where production is suffering. Central Asia also owns the Sasa lead-zinc complex in North Macedonia, which provides diversification and thereby reduces risk for investors.

I will seriously consider adding copper stocks to my portfolio when I have spare cash to invest.


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