BHP, Rio Tinto (commodities): Highly exposed to the prices of minerals and metals (iron, copper, coal). Their performance is closely tied to global demand, particularly in China.
Rewards
Trading at 27.1% below our estimate of its fair value Earnings are forecast to grow 4.76% per year
Risk Analysis
Profit margins (14.1%) are lower than last year (23.8%) Dividend of 5.17% is not well covered by earnings