Weir Group Taking Its Lumps, But Mining Demand Will Return

It’s hard for me to say that Weir Group (OTCPK:WEGRY, WEIR.LN) has had a bad year when the shares are up more than 20%, but Weir hasn’t benefited as much from the mining rebound as hoped, and the company is getting hit again by weakness in its oil and gas business, leading it to underperform fellow mining equipment company Epiroc (OTCPK:EPOKY), though it still has outperformed FLSmidth (OTCPK:FLIDY).

I still like the medium- to long-term outlook for mining equipment, as the world still needs copper, iron, et al, and mining companies are under increasing pressure to do more with less (less water, less power, less labor, less waste), but the near term could still have a few negative surprises. Weir’s strong aftermarket business will definitely help, but investors might need a little patience to see this one work out.

Click the link to continue:
Weir Group Taking Its Lumps, But Mining Demand Will Return