Mining Mammoths: Are Whitehaven Coal, Rio Tinto or BHP shares a buy ahead of earnings results?

Three of Australia’s largest mining companies will report important earnings results next week. 

BHP Group Ltd (ASX: BHP) will release its HY26 results on Tuesday, 17 February. 

Whitehaven Coal Ltd (ASX: WHC) will release HY26 results on Thursday, 19 February.

Rio Tinto Ltd (ASX: RIO) will also release FY25 results on Thursday, 19 February.

How are these mining shares performing?

ASX materials and energy sectors have surged in the last month as these industries have benefited from commodity price tailwinds. 

The S&P/ASX 200 Energy (ASX: XEJ) index is up 8.8% in that span. 

The S&P/ASX 200 Materials (ASX: XMJ) index is up 8.66%. 

All three of these mining giants are coming into earnings results red hot, enjoying big gains over the past month: 

• BHP shares are up 12%
• Rio Tinto shares have risen 18.51%
• Whitehaven Coal shares are up 4.25%

What are experts saying ahead of earnings results?

Both Rio Tinto and BHP shares hit multi year highs yesterday. 

BHP shares reached $52.64 per share during Thursday’s trade, its highest share price since April 2022. 

Rio Tinto reached a record $168.78, representing an all-time high. 

With valuations looking full, investors may be cautious to jump in ahead of earnings results. 

However both are experiencing a combination of tailwinds, including commodity price surges and a strong Aussie dollar.

Analysis from Canaccord Genuity and Wilsons Advisory said the materials sector has historically exhibited the best performance during periods of AUD appreciation.

This is good news for BHP and Rio Tinto shares. 

BHP is also benefiting from shifting global demand for copper.

Copper demand is being driven by electrification, renewable energy, data centres, and electric vehicles.

This looks to be good news long-term for the mining giant. 

Is there further upside?

Out of the three mining shares, brokers seem to view BHP and Rio Tinto shares as close to fully valued. 

However based on the tailwinds discussed earlier, I wouldn’t be surprised to see a re-rating should the companies post strong earnings results. 

Meanwhile, a recent note out of Ord Minnett indicated that Whitehaven Coal shares have yet to peak. 

The broker has a target price of $9.90 on the ASX energy stock. 

Yesterday, the share price closed at $8.58. 

If it was to reach the estimate from Ord Minnett, that would mean a rise of more than 15%. 

Foolish takeaway 

For these blue-chip stocks, sentiment seems to point towards recent momentum continuing thanks to a combination of tailwinds. 

Despite valuations seeming full, long term upside remains for BHP and Rio Tinto shares. 

Any share price pull back following earnings results could offer a more attractive entry point. 

The post Mining Mammoths: Are Whitehaven Coal, Rio Tinto or BHP shares a buy ahead of earnings results? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 7 ASX 200 large-cap shares hitting multi-year highs today
• The ASX 200 is back over 9,000 points! It’s thanks to just 2 ASX shares
• That was fast! BHP relinquishes biggest ASX stock crown as CBA shares rocket
• My 10 best ASX shares to buy in February

Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.