10 Best Materials Stocks to Buy Right Now

5) Ternium S.A. (NYSE:TX)

Average Upside Potential: 34.6%

Ternium S.A. (NYSE:TX) is engaged in manufacturing and distributing steel products in Mexico, Southern Region, Brazil, and internationally.

Ternium S.A. (NYSE:TX) is optimistic about future demand, mainly from the automotive and infrastructure sectors in its primary markets. Talking about developments, the expansion projects in Pesquería remain underway and a new pickling line and finishing center are expected to be operational in 2025-2026. Ternium S.A. (NYSE:TX) has a favorable outlook for Mexico’s industrial demand and North American steel market.

North America remains focused on moving towards low-carbon intensity steel production and the company has been investing to meet regional demands. Ternium S.A. (NYSE:TX) highlighted that government measures in Brazil and North America are targeting to reduce reliance on steel imports, which should support the company. It has been positioning itself for long-term growth with strategic investments in primary markets and renewable energy projects.

Ternium S.A. (NYSE:TX) continues to make significant investments in renewable energy and expansion projects. It expects a CapEx of between $1.7 billion – $1.8 billion for 2024, which will be focused on new facilities and a wind farm. Notably, the capital expenditure for 2025 is expected to be ~$2.3 billion, mainly for the Pesquería project. Following government reforms, Ternium S.A. (NYSE:TX) is optimistic about the long-term demand outlook in Argentina.

As per Wall Street, the shares of Ternium S.A. (NYSE:TX) have an average price target of $50.67.