Glencore looks to be a BUY26 Apr 2020 11:25
FTSE 100 stock bargain
The coronavirus crisis has forced global commodities giant Glencore (LSE: GLEN) to close many of its operations around the world. Clearly, this will have a significant impact on growth for 2020. Nevertheless, as the world’s largest commodities trader, the company is a critical part of the global economy.
So, while the crisis may continue to impact Glencore’s operations for some time, the long-term return potential of the FTSE 100 stock is high. With the stock down 41% since the beginning of the year, it appears to offer a wide margin of safety at current levels.
The stock also seems to be in a relatively stable financial position to overcome its present challenges. The company ended 2019 with net debt of $17bn, slightly above its targeted range of between $14bn and $15bn. But to help preserve liquidity, management has also postponed its latest dividend, saving $2.6bn.
Considering all of the above, buying the FTSE 100 stock today and holding over the long run could produce high returns for investors.