Rio Tinto Surges 36.7% in 3 Months: Should You Buy the Stock Now?

Core Viewpoint - Rio Tinto Group (RIO) has demonstrated strong stock performance, with shares increasing by 36.7% over the past three months, significantly outperforming both the industry and the S&P 500 [1][9]. Stock Performance - RIO shares closed at $97.24, nearing its 52-week high of $98.60 and well above its 52-week low of $51.67, indicating solid upward momentum [3]. - The stock is trading above both its 50-day and 200-day moving averages, reflecting confidence in the company's long-term prospects [3]. Production and Growth - The company has boosted copper output by 11% in 2025, achieving a total production of 883 kilotonne (kt), which is an increase of 11% year-over-year [9][12]. - RIO's first copper production at the Johnson Camp mine in Arizona, utilizing proprietary Nuton technology, marks a significant milestone for cleaner and more efficient copper recovery [11]. - The Johnson Camp project aims for approximately 30,000 tons of refined copper over a four-year demonstration period, with a focus on low carbon emissions [12]. - Iron ore shipments from the Pilbara facility rose by 7% year-over-year, while aluminum production increased by 2% in the same period [13]. Strategic Partnerships and Projects - In January 2026, RIO and Aluminum Corporation of China Limited (Chalco) formed a joint venture to acquire a controlling stake in Brazilian aluminum company CBA, enhancing RIO's green aluminum footprint [14]. - The Rhodes Ridge joint venture has approved a $191 million feasibility study to develop a major undeveloped iron ore deposit in Western Australia, targeting an initial production of 40-50 million tons annually [15]. Challenges and Market Position - Despite solid performance, RIO faced challenges such as weather-related disruptions affecting iron ore volumes and planned maintenance reducing copper output [16]. - The company operates in a competitive market with major players like BHP Group and TMC [16]. Financial Outlook - The Zacks Consensus Estimate for RIO's bottom line for 2026 has increased by 6.4% in the past 60 days, indicating positive market sentiment [19]. - RIO is trading at a forward price-to-earnings ratio of 12.84X, below the industry average of 16.31X, suggesting potential undervaluation [21]. Conclusion - Steady progress in growth projects, higher copper output, and advancements in iron ore and aluminum operations position RIO for sustained growth, making it an attractive opportunity for investors [22].