10 Best Nickel Stocks to Invest in According to Analysts

5) ArcelorMittal S.A. (NYSE:MT)

Average Upside Potential: 21.5%

ArcelorMittal S.A. (NYSE:MT) operates as an integrated steel and mining company in the US, Europe, and internationally. The base metals used by the company include zinc, tin, and aluminum for coating, aluminum for deoxidization of liquid steel, and nickel for producing stainless or special steels.

ArcelorMittal S.A. (NYSE:MT)’s growth momentum is expected to be aided by growth projects and decarbonization efforts. The company expects that its strategic growth projects should add a total of $1.8 billion of new EBITDA, and $1 billion of this is expected to come over the next 2 years. This provides ArcelorMittal S.A. (NYSE:MT) a significant boost on top of the expected cyclical recovery.

Over the past 12 months, the company generated investable cash flow of $2.8 billion, with a net $0.6 billion allocated to M&A, $1.5 billion invested on strategic growth capex projects, and $2.0 billion returns to ArcelorMittal S.A. (NYSE:MT)’s shareholders while maintaining a strong balance sheet. The company has been optimizing its decarbonization pathway to ensure that it can remain competitive and achieve an appropriate return on investment. ArcelorMittal S.A. (NYSE:MT) has reaffirmed its commitment to a $10 billion decarbonization target by 2030.

With the help of its global asset portfolio, the company is uniquely positioned to capture the expected growth in steel demand over the medium/long term.  ArcelorMittal S.A. (NYSE:MT) continues to build its portfolio of renewable energy projects in a bid to secure and decarbonize its future electricity needs. In August 2024, ArcelorMittal Brasil managed to sign contracts focused on the development of 2 solar energy projects with a combined capacity of 465MW, equivalent to 14% of its current electricity requirements in Brazil.

Wall Street analysts have an average target price of $31.95 on the shares of ArcelorMittal S.A. (NYSE:MT).