Buy These 4 TSX Metals Stocks With Massive Upside

Lundin Mining (TSX:LUN) matches steep growth potential in a booming sector with passive income. Find out why stocks like this are a long-term buy.

| More on:
Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)

Image source: Getty Images

There’s no denying that it’s a frothy market and metals investing is still dogged by uncertainty. But there are growth opportunities to be had despite many commodities still being undervalued. Some of them have huge upside potential.

But which ones belong in your stock portfolio? Four metals. Four exemplary stocks. Let’s explore the options for investors seeking upside today in some unloved metals.

These metals stocks are still great value for money

Palladium is looking hot right now. Yet it’s still undervalued. Canadian investors have a number of options in this space. However, one of the very best is North American Palladium. This name is based in Canada, operating the Lac des Iles palladium mine in Ontario.

It’s a pure-play palladium stock, making it a rare pick to say the least. Factor in its relatively lower geopolitical risk and you have a solid buy.

Any play for uranium upside should factor in buying shares in Cameco (TSX:CCO)(NYSE:CCJ). Uranium spot prices are up as production is squeezed mid-pandemic. The thesis for snapping up undervalued uranium shares strengthens every time a bottleneck appears in this flooded market.

However, demand could prove an equally strong draw for would-be Cameco shareholders as clean energy continues to disrupt the power sector.

The green economy is a global growth trend

Lithium has the potential to be one of the major growth success stories of the decade. If the lockdown has taught environmentalists anything, it’s that canning the commute means a cleaner world. Electric vehicles are one way to play the “work from home” space.

Indeed, this is a theme that could last far beyond the pandemic. Investors looking for upside in metals should consider Lithium Americas.

Copper is another key commodity that could see huge upside from growth in the green power space. The orange metal is highly sought after as a component of alternative energy systems. As such, the green economy could prove a big boost for copper stocks.

Investors should consider working some passive income into a copper play. Lundin Mining (TSX:LUN) would be a top stock to buy that ticks all the boxes.

Passive income is a draw here – perhaps even more so that the chance for steady capital appreciation. Dividend growth is highly sought after, and when a stock makes regular payments the thesis is all the stronger when growth is thrown in.

Rather than viewing the likes of Lundin Mining as growth stocks that pay a dividend, passive income investors may therefore want to view them as dividend stocks with growth potential.

The bottom line

Metals and mining stocks are one thing the TSX does well. Natural resources are, after all, Canada’s bread and butter. Investors should consider the beaten-up commodities space for long-term wealth creation, with uranium looking set for a comeback.

Never mind the decline in copper prices, either. The outlook is especially bright for the orange metal, with everything from electric vehicles to solar power systems driving upside potential.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Volatile market, stock volatility
Metals and Mining Stocks

Weathering Volatility: Strategies for Success With TSX Stocks

The key to handling volatility is changing your asset mix. For example, if you suspect a market downturn, you can…

Read more »

Gold bars
Metals and Mining Stocks

1 Top Gold Stock to Buy for Under $10

Kinross Gold Corp is banking strong cash flows and fortifying its balance sheet, and its stock investors are smiling this…

Read more »

A tractor harvests lentils.
Dividend Stocks

Better Buy: Agnico Eagle Mines vs Nutrien Stock

Canadian investors could get greedy and buy Nutrien stock as it navigates a tough terrain, or jump into an easygoing…

Read more »

Retirement plan
Metals and Mining Stocks

Building a Resilient Retirement Portfolio? I’d Buy Franco-Nevada Stock in September 2023

Gold and precious metals streamer Franco-Nevada could be your defensive gold stock to buy and hold into 2024.

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Metals and Mining Stocks

A Gold Stock to Buy: Agnico Eagle Mines

Agnico-Eagle Mines is the safest gold stock to buy if you want a safe haven from current turmoil and exposure…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: Why Canadian Stocks Could Fall on Tuesday, September 5

Intraday weakness in commodity prices could drive the main TSX index lower at the open today.

Read more »

Metals and Mining Stocks

Is it Too Late to Invest in Battery Materials?

The battery metal initial hype has died down, but many battery metal stocks are still viable long-term investments.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Tuesday, August 22

Overnight gains in metals prices could lift TSX mining stocks at the open today.

Read more »