The Motley Fool

3 More FTSE 100 Shares Trading Near 52 Week Lows: Rio Tinto plc, Fresnillo Plc and Petrofac Limited

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Rio Tinto

The slowing of the Chinese economy has reduced demand for iron ore, Rio Tinto (LSE: RIO) (NYSE: RIO.US)’s main product.

Last year, analysts were forecasting that Rio would report $8.38 of earnings per share (EPS) in 2013. As metals prices have fallen, the City now expects that Rio will make just $5.35 per share.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

This is a big decline on the money that Rio has made in recent years. The fact that earnings at Rio can so quickly go into reverse will have undermined confidence in the company as an investment.

Rio now trades on a 2013 P/E of 7.3, with an expected yield of 4.6%. Earnings are expected to pick up next year, putting the shares on a 2014 P/E of 6.5, with a projected yield of 5.0%.


Fresnillo (LSE: FRES)’s profits are massively geared to the price of silver. For the last few years, precious metals have been a play on quantitative easing (QE). Any announced increases in QE have seen bullion prices surge.

However, the US Federal Reserve is now signalling that US dollar QE may soon be coming to an end. This has shocked the precious metals markets. The supposedly safe-haven investments have sold off sharply.

The price of silver is down 31% in the last year. Fresnillo shares are down 40%. At a time like this, earnings forecasts fail to keep up with changing metals prices.

The price of silver is close to where we were before QE started up. The big price falls may be over.


Energy services firm Petrofac (LSE: PFC) is one of the FTSE 100’s great growth shares. In the last five years, its dividend has increased at an average rate of 31% per annum. In that time, earnings have been increasing, year-on-year, at an average of 26% a year.

All of this success has not prevented Petrofac shares from falling 24% in 2013.

The recent price falls are puzzling. Back in May, Petrofac confirmed that it expected to report a modest increase in profits in 2013. Last year, the company made EPS of $1.79. At today’s price, Petrofac is trading on a historic P/E of 10.3. That seems inexpensive for a company that has been so successful.

Petrofac looks like an extraordinary company trading at an ordinary price. Super-investor Warren Buffett has made billions buying such companies. Recently, he has been purchasing shares in a different FTSE 100 company. To find out which one, check out the Motley Fool report “The One UK Share Warren Buffett Loves”. This 100% free analysis will be delivered to your inbox immediately. Just click here to get your copy today.

> David does not own shares in any of the above companies.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.