Fortescue Metals Group is a company that a lot of investors have a keen eye on. The company’s IPO opened in August 2003, which is also the year of its establishment. Many loyal investors have stood through the ups and downs of the market that FMG’s stocks have seen ever since. But few analysts are of the opinion that we might be looking at the beginning of the rise of such industries in the market.
Here is an analysis of the company and its predicted stock prices in the future to help you make a more informed decision on further investments. These analyses are made by observing and studying the previous trends and company policies.
However, nothing can and nothing ever will guarantee a successful investment. Good investments are made by both luck and the brain in equal parts.
What is Fortescue Metals Group?
Fortescue Metal Group is an iron-ore mining company based in Australia. As of today, its share price stands at AUD22.99 with -0.41(1.76%). It was created by the vision and passion of Andrew Forrest for bringing the natural treasures of the Pilbara region in Australia to the global markets.
The company was started from scratch in 2003 and remained under the carpet until 2008. In 2006, Fortescue Metal Group received its first funding through a corporate bond transaction. It supplies almost one-tenth of the world’s iron ore produced from the sea. With continuous expansions taking place in the company, this number is expected to grow even more.
Fortescue Metals Group Stock Analysis
A recent poll found that around 85% of the market has a bullish sentiment for the company’s growth in the stock market. According to CompaniesMarketCap.com rankings, Fortescue Metals Group is the 9th largest ore mining company by market capitalization as of 20-02-2023. The company shares have done exceedingly well in the past few months, witnessing a rise of almost 50% in the past 3 months. Its price-to-earnings ratio has consistently been below the Australian market. But the company has seen a year-by-year decline in earnings and profits in the past few years. Some analysts are of the view that the demand for iron ores might decrease due to lower production in countries like China. This can affect the whole industry and may lead to a price drop.
However, in the long game, the company is expected to see an upward trend.
Fortescue Metals Group Stock Prediction 2023
The estimated stock price for Fortescue Metals Group for 2023 is about $15 to $17. The company is looking forward to expanding and diversifying its business and Fortescue Future Industries was created in 2020 for the same cause.
Fortescue Metals Group Stock Prediction 2024
According to analysts, Fortescue Metals Group’s stock price will hit $19 in 2024. The company is attempting to place itself as a green energy company. Sources state that FMG will spend around $6.2 billion dollars towards this cause. They are expected to be a key factor in accelerating the process of switching from fossil fuels to completely nature-friendly resources.
Fortescue Metals Group Stock Prediction 2025
The stock prices will range between $20 to $22. Fortescue Metal Group and Fortescue Future Industries are getting into green hydrogen production, which is going to be the first one of its kind.
Fortescue Metals Group Stock Prediction 2026
Fortescue Metals Group’s shares are expected to shoot up to $25 in the year 2026.
Fortescue Metals Group Stock Prediction 2027
The shares of Fortescue Metals Group will lie between $25 to $27 for the year 2027. It is building an Iron bridge mine to increase the quantity of magnetite ore mining.
Fortescue Metals Group Stock Prediction 2028
The share prices will hover around $28 in 2028. Some analysts are of the opinion that the share prices of Fortescue Metals Group are overvalued and might be too big a risk for new investors.
Fortescue Metals Group Stock Prediction 2029
Fortescue Metals Group stock price will drop to around $25 in 2029 according to the analysis. Analysts are of the view that the introduction of Fortescue Future Industries may lead to a cash drain in the core industries.
Fortescue Metals Group Stock Prediction 2030
The share prices will hover around $17 to $18 in 2030. Predictions are that China is going to invest in iron ore mining in some regions of South Africa which might give a blow to Fortescue Metals Group.
FAQs
What metal does Fortescue mine?
Fortescue Metal Group largely mines iron ore. The company announced in 2018 that it will be putting its hands in many other mineral minings. We can expect it to start with gold or copper minings soon.
Who owns Fortescue metals?
Andrew Forrest is the executive chairman of Fortescue Metal Group and also owns one-third of it. Elizabeth Gaines was the only woman CEO of the company until her departure in 2021. Fiona Hick is all set to take up the position in 2023. She has been the Executive Vice President of Operations at Woodside Energy and has more than two decades of experience in the resource sector.
Is Fortescue Metals Group a good long-term investment?
Considering all the above-mentioned factors, Fortescue Metal Group may be the perfect place for a long-term investment. The company is reducing its dividend starting 29th March 2023, which implies that they are looking forward to investing in future opportunities. People may lose interest in the stocks due to irregular dividend rates but the company holds a chance of booming in the future owing to the cost cut.
Fortescue Metal Group’s earnings are speculated to be inconsistent for the next few years due to a few ongoing projects. In the long run, though, the company may see a rise in profits owing to its effective policies.
Is it a good time to buy Fortescue Metals Group shares?
It seems like a good time to invest in Fortescue Metal Group stocks as passive investors. Minor market fluctuations aside, the company is on its way to flourishing in the next decade. Fortescue Metal Group is looking forward to further expansion and revolutionizing the industry in terms of green energy production.
However, it is advised to dig a little deeper on your own end before you invest your money in any company.
Hi, I’m Damini majumder. I’m the author and writer of this blog and share all the information related to Cryptocurrency, Finance, Market forecast, Stock forecast, US and Indian shares through this website. I’m an experienced content writer and aspire to succeed as a content writer in the virtual realm by generating traffic through my immersive content and engaging taglines. Read More