Why I Like Turquoise Hill Resources Ltd. (TSE:TRQ)

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Attractive stocks have exceptional fundamentals. In the case of Turquoise Hill Resources Ltd. (TSE:TRQ), there's is a company with a buoyant future outlook, which has not yet been priced into the stock. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Turquoise Hill Resources here.

High growth potential and good value

TRQ is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year, bolstered by its outstanding cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. TRQ's share price is trading below its true value according to its price-to-earnings ratio of 9x compared to its industry as well as the wider stock market, so potential investors can purchase the stock below its value.

Next Steps:

For Turquoise Hill Resources, there are three pertinent factors you should look at:

1. Historical Performance: What has TRQ's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRQ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.