China Slump Turns Once World-Beating Mining Stock Into Big Loser

(Bloomberg) — Iron ore behemoth Fortescue Ltd.’s months-long stock rally suffered a big pullback in February as investors turned sour on the company’s earnings growth and high exposure to slumping metal prices amid China’s rocky recovery.

The world’s fourth-largest iron ore miner is tipped for the greatest earnings slowdown over the next year compared with peers BHP Group Ltd., Rio Tinto Group and Vale SA, according to data compiled by Bloomberg. Shares of the Australian firm founded by billionaire Andrew Forrest have surged almost 30% in the past six months, outpacing peers. But since the start of this year, shares have tumbled alongside iron ore, one of 2024’s worst-performing major commodities.