Glencore (LSE: GLEN) shares have been a great investment of late. Had an investor put £5,000 into them a year ago, that money would now be worth about £9,700 and that’s before dividend payments of $0.22 per share.
Are the shares still worth considering today? Potentially – here are three reasons to be bullish.
Copper exposure
Glencore’s one of the largest copper producers in the world. And the long-term outlook for copper is attractive.
Over the next decade, the shift to renewable energy, the transition to electric vehicles (EVs), and the scale up of data centres should all boost demand for copper. It’s a critical material in these industries due to its ability to conduct electricity and be easily shaped and drawn into wires.
A booming trading division
Glencore’s more than just a copper producer however. It also has a major commodities trading division. This can be very beneficial when there’s a high level of volatility in the commodity markets – like there has been recently.
In the first half of 2026, this division generated adjusted earnings before interest and tax (EBIT) of $3.3bn – up 142% year on year – on the back of the materially disrupted energy, freight, and other markets during the period.
An upcoming Australian listing
Another reason to be bullish is that the company’s targeting a secondary listing on Australia’s ASX exchange, expected to take place in October. I think this is a smart move. Australians love mining stocks and a listing in Oz could boost demand for the shares and trading liquidity.
Australia is home to one of the world’s largest and fastest-growing pools of long-term investment capital, with AUD $4.4trn in pension assets expected to grow to approximately AUD $12.4trn by 2045. The market also offers access to a highly sophisticated investor base with deep expertise in the global resources sector.
Glencore H1 results
Glencore’s drawbacks
Having said all that, Glencore has its flaws. One is that revenues and profits are almost impossible to predict given the nature of its operations. And big drops in both are common. If copper prices fall, or trading income moderates, Glencore’s financials can look ugly.
Additionally, with this stock, price-to-earnings (P/E) ratios are pretty meaningless. This is due to the fact that earnings can swing around wildly. So you never really know if the stock’s cheap or not. It can look cheap, but if earnings tank, it can end up looking expensive.
I’ve gone with this copper stock instead
Given the volatility of Glencore’s revenues and profits, and the difficulty in assessing value, I’ve gone with another copper stock, Mueller Industries. Listed in the US, it’s a leading manufacturer of copper tubes and fittings.
It has its own risks, of course. But with a track record of over 30 years of profitable growth, I reckon it’s worth a closer look.
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Edward Sheldon owns shares in Mueller Industries
This story originally appeared on Motley Fool
