Fortescue Metals Group Ltd (ASX: FMG) shares have had a tough run of it in 2024.
Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $17.75 apiece. As you can see on the chart below, this sees the share price down nearly 40% year to date.
So, after that painful tumble, is now a good time to buy Fortescue shares?
A brighter outlook for Fortescue shares
Fairmont Equities' Michael Gable believes the answer to that question is 'yes'.
Gable has a buy recommendation on Fortescue shares (courtesy of The Bull), noting "encouraging signs on the technical charts that Fortescue has bottomed and is ready to head higher again".
Gable pointed out that, "After bouncing strongly in September, FMG was then subjected to selling pressure in October and November."
He added:
Total iron ore shipments of 47.7 million tonnes in the first quarter of fiscal year 2025 were up 4% on the prior corresponding period. This included 1.6 million tonnes from Iron Bridge, which was higher than full year shipments in fiscal year 2024.
In our view, the company's outlook is brighter.
Atop the potential for Fortescue shares to make a turnaround from the past months of selling pressure, the ASX 200 mining stock also trades on a fully franked trailing dividend yield of 11.0%.
What's been happening with the ASX 200 miner?
Turning to the most recent price sensitive announcements, on 25 September Fortescue shares closed up 4.7% after the company reported on a major expansion of its green partnership with global equipment manufacturer Liebherr.
Investors were clearly enthusiastic about the new agreement, which will see the two companies collaborate on various zero emission mining solutions.
The agreement was valued at up to $4 billion, with Liebherr supplying the green machines while Fortescue Zero supplies the battery power systems.
"This is an important next step in our 2030 Real Zero target – to eliminate emissions from our Australian terrestrial iron ore operations by the end of the decade," Fortescue founder Andrew Forrest said on the day.
The other recent price sensitive news came on 24 October, when Fortescue released its quarterly update for the three months to 30 September.
The ASX 200 miner reported total iron ore shipments of 47.7 million tonnes, up 4% year on year. Despite this setting a new first quarter shipments record, investors bid down the stock, possibly because iron ore shipments came down 12% from the prior quarter.
Fortescue shares closed down 3.2% on the day.
But if Fairmont Equities' Gable has this right, the months ahead are looking brighter.
