Jefferies recommends: Defensive mining stocks amid market volatility

Investing.com – Jefferies has identified a few promising mining stocks that are expected to remain resilient amid current market volatility. Despite ongoing geopolitical tensions and rising risk aversion in the stock market, commodity prices are expected to stay strong.

At the time of this analysis, mining stocks experienced a sell-off over the past week, mainly driven by broader market concerns and fears of a potential recession. However, Jefferies maintains that as long as oil prices do not significantly impact the global economy, this sector could perform positively on fundamentals.

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Glencore believes that as long as oil prices do not severely affect the global economy, commodity prices should remain resilient amid ongoing conflicts, and mining stocks should have some defensive qualities.

Recent developments show that negotiations for Glencore’s merger with Rio Tinto have concluded. Reports indicate that the company is also close to finalizing a deal to sell its 70% stake in Kazzinc, a Kazakh zinc and gold producer.

Aluminum Corporation of America (Alcoa) Despite strong fundamentals, mining stocks were sold off over the past week due to overall risk aversion in the stock market, possibly driven by concerns over a recession caused by the war. The firm notes that the strong performance of metals and mining stocks over the past six months can be attributed to increased geopolitical risks, structural weakness of the dollar, and inflation risks.

Alcoa has announced plans to sell several closed or reduced-capacity plants to data center companies. After a period of strong performance, Morgan Stanley downgraded the stock from overweight to neutral.

Peabody The increasing application of artificial intelligence in the mining industry has the potential to significantly boost productivity, reduce dependence on fossil fuels and other consumables, lower environmental footprints, improve safety outcomes, and enhance profitability and returns.

Peabody Energy reported Q4 2025 earnings that exceeded analyst expectations, with revenue of $1.02 billion and earnings per share of $0.08.

Core Natural Resources Due to concerns over recession caused by the war, the company is expected to be in a favorable position.

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