Is Glencore a good stock to buy ahead of earnings?

on Oct 26, 2022
  • Glencore share price has jumped by almost 40% in 2021.
  • It has outpaced the FTSE 100 and other mining stocks.
  • Glencore is expected to publish mixed results this week.

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The Glencore (LON: GLEN) share price held steady on Wednesday as investors wait for the company’s earnings. It rose to a high of 509p, which was the highest level since September 15th. This means that it has jumped by almost 40% this year, making it one of the best performers in the FTSE 100 index.

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Glencore earnings ahead

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Glencore is one of the biggest mining companies in the world. It has operations in tens of countries like South Africa, Chile, Colombia, DRC Congo, and Australia among others. It specializes in key metals like copper, nickel, cobalt, and iron ore among others.

In addition to mining, Glencore is a leading player in the energy and trading industry. It makes most of its money mining and selling coal. Also, it is a leading energy trader that sells millions of barrels of oil every day.

Glencore share price has done well in the past few months as investors react to the company’s strong revenue growth. This happened as the prices of key commodities, especially coal, rose sharply following Russia’s invasion of Ukraine. 

Glecore’s business has been doing well. It made a total revenue of over $115.7 billion in the first half of the year. Its metals and minerals revenue was over $44 billion while its energy business brought in $71 billion. It had a total adjusted EBITDA of over $3.8 billion.

Glencore share price has risen even as concerns about the Chinese economy continue. Most economists expect that the country’s economy will slow down dramatically this year due to its Covid strategy and the deleveraging in the real estate sector. As a result, the prices of most commodities have pulled back sharply.

Glencore will publish its third-quarter production data on Friday. Analysts expect that its energy business did well in the quarter while its metals business struggled.

Glencore share price forecast

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Glencore share price

The daily chart shows that the GLEN share price has been in a strong bullish trend in the past few months. It has managed to move above all moving averages and formed an ascending triangle pattern that is shown in black. In price action analysis, this pattern is usually a bullish sign. 

The stock has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly above the neutral point. Therefore, the stock will likely have a bullish breakout as buyers target the key resistance at 525p.


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