I think the exciting copper demand outlook provides a compelling investment opportunity. There are plenty of top UK and US shares that have made mining the red metal their business. And Central Asia Metals (LSE: CAML) is one whose exceptional all-round value has caught my eye.
This particular mining stock pulls copper (alongside lead and zinc) out of the ground in Kazakhstan and North Macedonia. These metals are used in massive quantities in electric vehicles, to name just one reason why I’m paying it close attention.
Earnings here are forecast to rise 3% in 2022. This means the metals digger trades on a forward price-to-earnings (P/E) ratio of just 6.5 times. On top of this, Central Asia Metals boasts a mighty 6.9% dividend yield at current prices.
I’d also buy CAML because of its impressive production record of late. The company produced a forecast-beating 14,041 tonnes of the stuff in 2021, up 1.3% year-on-year, ahead of guidance. I think it’s a top buy despite the backdrop of rising political instability in Kazakhstan.
A penny stock on my radar
Property prices are booming in the UK. But of other countries are seeing higher prices too. Therefore I’m thinking of giving my portfolio a bit of geographical diversification by investing in overseas housebuilders (I already own Taylor Wimpey and Barratt in my portfolio).
Penny stock Glenveagh Properties (LSE: GLV) is one such construction stock on my watchlist. This UK share builds properties in Ireland, a market in which the average home price jumped 7.7% in 2021.
Glenveagh is ramping up production to fully capitalise on these fertile trading conditions as well. It is seeking to complete on 1,400 homes a year from 2022 (by comparison it completed on 1,150 last year). Forecasters think earnings here will swell 66% in 2020, leaving the builder trading on a price-to-earnings growth (PEG) of just 0.3. I’d buy it despite the threat rising raw material costs poses to profits.
A top US share for the gaming boom
I’m considering buying shares in Take-Two Interactive Software (NASDAQ: TTWO) too as video games demand rockets. It’s an industry powerhouse with massively-popular franchises like Grand Theft Auto and Civilisation in its stable.
Take-Two is also joining in on the M&A craze sweeping the sector and is looking to seal the biggest games company buyout in history. More specifically, the US share’s planned acquisition of Zynga would help it become a major player in the fast-growing mobile games segment.
This may be needed given the huge supply problems affecting Sony’s PS5 and Microsoft’s Xbox Series X consoles. These shortages could have a permanent impact on console usage and, by extension, demand for Take-Two’s titles on these platforms.
City analysts think Take-Two’s earnings will soar 37% in the year to April 2022. This leaves it trading on a forward PEG ratio of 0.9. A stock could be undervalued with a reading below 1.