10 Best Asian Stocks To Buy Now

4. POSCO Holdings (NYSE:PKX)

Upside Potential: 58.97%

Average Analyst Price Estimate: $95.65

POSCO Holdings (NYSE:PKX) is a South Korean multinational steel production company that operates in 13 countries and is one of the largest steel companies in the world. The company also deals in the construction, logistics, and energy sectors. POSCO Holdings (NYSE:PKX) also produces eco-friendly materials for rechargeable batteries. However, 82% of the total revenue of POSCO Holdings (NYSE:PKX) was derived from its core steel production business in the year 2023.

On July 12, POSCO Holdings (NYSE:PKX) announced share repurchases and the cancellation of treasury stock, which are expected to enhance shareholder returns. The company plans to buy back and cancel 5.25 million shares worth $1.47 billion in the next three years, which represent about 6% of its outstanding shares. This means that the cancellation of shares will return capital back to shareholders. The company plans to enhance its corporate value by investing in high-growth businesses and divesting assets that yield low returns to strengthen its financial performance. The company is also considering to build steel-making facilities in India and the United States. POSCO Holdings’ (NYSE:PKX) Chief Strategic Officer, Jeong Ki said in the statement:

“The company will continue to boost its corporate value by making investments in growth businesses, selling off low-yielding assets and taking aggressive steps to expand shareholder returns”

POSCO Holdings (NYSE:PKX) intends to sell non-core and low-profit assets and raise $1.92 billion, which will be invested in lithium-ion battery materials sector. According to Precedence Research, the global electric vehicle battery market size is calculated at $85.35 billion in 2024 and is expected to reach $252.02 billion by 2032, growing at a CAGR of 21.50%. POSCO Holdings (NYSE:PKX) is planning to establish new battery materials manufacturing facilities, which will increase its production capacity by 32% for the top-line products. By expanding its revenue base in the battery materials sector, POSCO Holdings (NYSE:PKX) aims to reduce its dependence on the steel industry. The battery materials business has a greater growth potential compared to steel. As of August 14, POSCO Holdings’ (NYSE:PKX) stock is trading at $60.17, and analysts project an average price target of $95.65, which represents a 58.97% upside potential.