Value Pick Or Cautionary Tale? Rio Tinto Faces Investor Scrutiny Post-2023 Recovery

As Rio Tinto PLC RIO readies the release of its full-year 2023 earnings on Feb. 21, traders would be wise to consider several key factors.

The London-based mining giant saw its share price dip over 11% year-to-date.

Rio Tinto is also under intense scrutiny for allegedly polluting and contaminating water in both Mongolia and Madagascar.

Investors are now wondering whether the stock is a value pick or if there’s further downside here.

Long-Term Fundamental Catalysts

Rio Tinto’s strategic assets (i.e., Simandou mine and Oyu Tolgoi) contribute to a diversified commodity portfolio, and a robust balance sheet.

Plus, strategic investments in exploration showcase the firm’s financial resilience.

The company is also optimistic when it comes to iron ore price outlook.

Related: Mining Giant Rio Tinto Caught Into Water Nightmare At Two Mines: Report

The technical setup for Rio Tinto stock appears bearish.

The stock’s 50-day simple moving average is $70.45 while RIO share price is $66.00, making it a Sell technically. The 200-day simple moving average is $65.68, creating a Buy signal.

Ratings & Consensus Estimates: Consensus analyst ratings on Rio stock stand at a Neutral currently with a price target of $6.45.

JPMorgan is currently Overweight on the stock with price targets implying an upside of 7% and 31%, respectively on the Australia and London-listed stocks of Rio Tinto.

RIO Price Action: Rio Tinto stock was trading at $65.80 on the last check on Feb. 20.

Read Next: Positive Outlook For Copper Miners In 2024: Freeport Has 11% Upside, While This Small Cap Boasts 120% Upside

Image by Maria Jesus from Pixabay