Rio Tinto Group (NYSE:RIO) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 15, Liam Fitzpatrick from Deutsche Bank raised the firm’s price target on Rio Tinto Group (NYSE:RIO) from 6,200 GBp to 6,900 GBp, while maintaining a Hold rating on the shares.

The company had reported its first quarter 2026 production and operations review on April 21, and the stock has gained more than 3% since the release. During the quarter, the company’s flagship Pilbara iron ore operations posted second highest first quarter production since 2018. The production rose 13%, driven by improved productivity and fewer weather related disruptions. Moreover, the Iron ore sales also grew 2.4% year-over-year to 72.4 million metric tons. Despite the growth, sales fell short of Visible Alpha consensus estimates of 74.6 million metric tons. However, management maintained a full-year Pilbara sales forecast of 323–338 million tons.

The report by Reuters noted that on the cost side, higher diesel prices have added pressure, though management says its scale and global supply-chain leverage have kept its cost position resilient. The bigger concern lies in the second half of the year, where jet fuel and diesel shortages are seen as the key operational risk. These could affect equipment, logistics, and the movement of personnel to remote mining sites.

Rio Tinto Group (NYSE:RIO) is one of the most diversified mining groups globally, with operations spanning iron ore, copper, aluminum, lithium, and other critical minerals. Headquartered in London and operating as a dual-listed company with Rio Tinto plc in London and Rio Tinto Ltd in Melbourne, the company traces its origins to 1873. Its scale, geographic diversity, and low-cost asset base have made it one of the most durable names in the global resources sector.

While we acknowledge the potential of RIO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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