Glencore (LSE: GLEN) shares have been an ideal funding of late. Had an investor put £5,000 into them a 12 months in the past, that cash would now be price about £9,700 and that’s earlier than dividend funds of $0.22 per share.
Are the shares nonetheless price contemplating at the moment? Probably – listed below are three causes to be bullish.
Copper publicity
Glencore’s one of many largest copper producers on the planet. And the long-term outlook for copper is enticing.
Over the following decade, the shift to renewable power, the transition to electrical automobiles (EVs), and the size up of knowledge centres ought to all enhance demand for copper. It’s a crucial materials in these industries because of its skill to conduct electrical energy and be simply formed and drawn into wires.
A booming buying and selling division
Glencore’s greater than only a copper producer nevertheless. It additionally has a significant commodities buying and selling division. This may be very useful when there’s a excessive degree of volatility within the commodity markets – like there was not too long ago.
Within the first half of 2026, this division generated adjusted earnings earlier than curiosity and tax (EBIT) of $3.3bn – up 142% 12 months on 12 months – on the again of the materially disrupted power, freight, and different markets throughout the interval.
An upcoming Australian itemizing
Another excuse to be bullish is that the corporate’s focusing on a secondary itemizing on Australia’s ASX trade, anticipated to happen in October. I feel this can be a good transfer. Australians love mining shares and an inventory in Oz may enhance demand for the shares and buying and selling liquidity.
Australia is dwelling to one of many world’s largest and fastest-growing swimming pools of long-term funding capital, with AUD $4.4trn in pension property anticipated to develop to roughly AUD $12.4trn by 2045. The market additionally gives entry to a extremely subtle investor base with deep experience within the world sources sector.
Glencore H1 outcomes
Glencore’s drawbacks
Having stated all that, Glencore has its flaws. One is that revenues and income are nearly inconceivable to foretell given the character of its operations. And large drops in each are frequent. If copper costs fall, or buying and selling earnings moderates, Glencore’s financials can look ugly.
Moreover, with this inventory, price-to-earnings (P/E) ratios are fairly meaningless. This is because of the truth that earnings can swing round wildly. So that you by no means actually know if the inventory’s low cost or not. It may possibly look low cost, but when earnings tank, it could possibly find yourself wanting costly.
I’ve gone with this copper inventory as a substitute
Given the volatility of Glencore’s revenues and income, and the issue in assessing worth, I’ve gone with one other copper inventory, Mueller Industries. Listed within the US, it’s a number one producer of copper tubes and fittings.
It has its personal dangers, after all. However with a monitor file of over 30 years of worthwhile development, I reckon it’s price a better look.
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Edward Sheldon owns shares in Mueller Industries
