In this article, we will discuss the 10 Best Nickel Stocks to Invest in According to Analysts.
Investing News Network highlighted that Nickel witnessed strong price momentum in H1 of the year as the prices took support from investor sentiment and speculation throughout commodity markets which saw a surge in prices for precious and base metals. Nickel prices remained volatile during Q3 2024 due to market speculation, Chinese stimulus, and oversupply.
Among the contributing factors was the supply of laterite nickel out of Indonesia, which led to mine curtailments in New Caledonia, Australia, and Europe. Furthermore, the increased demand for battery production in China is yet to reach the levels required to make up for the increased supply. Despite the EV sector in China showing a YoY increase of 32% during the first 9 months of 2024, the industry’s nickel demand was not able to make up for shortcomings in the broader economy.
Oversupply of Nickel
Nickel remains a critical component in NMC (nickel-manganese-cobalt) batteries, which are used in EVs. For the last few quarters, the market saw a significant oversupply of nickel from Asian markets, mainly from Indonesia. As per S&P Global, mined nickel production from the country saw an increase of 99,000 metric tons during Q3 2024 and is expected to be in the 2.4 million metric ton range by 2024-end, making up 57% of total global production. Despite growing demand for batteries, the oversupply situation has not been under control. This is mainly because of a weak Chinese economy.
China has been tagged as the largest consumer of nickel in the world as a majority of the metal is being used in stainless steel production. However, a difficult real estate sector and broad economic deflation impacted the demand. Investing News Network went on to say that Nickel found pricing support in September, with the Chinese government rolling out stimulus measures focused on fueling economic growth. The measures also included a 0.5% cut to the mortgages and a reduction in the downpayment to buy a home to 15% from 25%. Even though there was an initial surge in nickel prices after the package, the prices retreated once again.
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What Can Drive Nickel Prices?
Despite the challenging market conditions, Nickel’s long-term demand in the EV industry is robust. According to EV Magazine, as automakers prioritize the high-nickel battery chemistries because of range and performance advantages, nickel consumption should be fueled as a result of the global shift toward electrification.
As per Benchmark estimates, the battery nickel demand is expected to triple by the year 2030. Mid and high-level performance EVs are expected to fuel the growth of battery nickel demand in the coming years, mainly in Western markets. Benchmark projections demonstrate that nickel-based chemistries will capture 85% of battery cell production capacity outside of China by the year 2030. The batteries should make up for more than 50% of nickel demand growth by 2030, touching 1.5 million tonnes of nickel demand by the decade’s end.
Amidst these trends, let us now have a look at the 10 Best Nickel Stocks to Invest in According to Analysts.
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Our Methodology
We used a screener and sifted through several online rankings to extract the nickel stocks. Finally, the list of stocks was arranged in the ascending order of their upside potential, as of November 15.
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10 Best Nickel Stocks to Invest in According to Analysts
10) Carpenter Technology Corporation (NYSE:CRS)
Average Upside Potential: 7%
Carpenter Technology Corporation (NYSE:CRS) is a leading producer and distributor of specialty metals, which includes nickel alloys, titanium alloys, and superalloys.
Wall Street analysts believe that the aerospace and defense sectors continue to form the cornerstone of Carpenter Technology Corporation (NYSE:CRS)’s market demand. Passenger demand and geopolitical factors drove strong growth in these industries. Original Equipment Manufacturers (OEMs) including Boeing, RTX, GE, and Airbus saw challenges in ramping up production, resulting in opportunities for agile suppliers such as Carpenter Technology Corporation (NYSE:CRS).
As per the analysts, the company was able to exploit this situation by flexibly allocating its products among OEMs, aftermarket customers, and defense contractors. Therefore, Carpenter Technology Corporation (NYSE:CRS) was able to navigate supply chain disruptions effectively and sustain its strong market position.
Moving forward, Carpenter Technology Corporation (NYSE:CRS)’s earnings momentum is expected to be aided by improved productivity, product mix optimization, and pricing power. Considering the solid execution, healthy market position, and unique manufacturing capabilities, the company expects operating income to be at the high end of the $460 million to $500 million range for the full fiscal year. The company expects its long-term aerospace demand to remain strong, with 2026 potentially exceeding 2025 performance.
Deutsche Bank analyst Scott Deuschle gave a “Buy” rating on the shares of Carpenter Technology Corporation (NYSE:CRS), increasing the price target to $215 from $205 in September 2024. Invesco Distributors, Inc., an investment management firm, released its Q2 2024 investor letter. Here is what the fund said:
“Carpenter Technology Corporation (NYSE:CRS) manufactures, fabricates and distributes stainless steels, titanium and specialty metal alloys. Management accelerated its guidance for long-term fiscal 2027 EPS (earnings per share) by a full year. Management also reported quarterly earnings that beat analysts’ expectations and raised guidance for fiscal year 2024.”
9) Leggett & Platt, Incorporated (NYSE:LEG)
Average Upside Potential: 9.9%
Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturer, producing a variety of products, including items for homes, offices, and automobiles. Among the most important raw materials that the company uses include chemicals used in foam production, titanium, and nickel-based alloys, and other high-strength metals, among others.
Wall Street analysts believe that Leggett & Platt, Incorporated (NYSE:LEG)’s focus on cost reduction and restructuring plan should drive improvement in its bottom line. The company is focused on simplifying its portfolio to businesses that represent long-term value. As a part of this review, Leggett & Platt, Incorporated (NYSE:LEG) continues to explore the potential sale of its Aerospace business.
The company expects that actions focused on strengthening the balance sheet, improving operating efficiency and margins, and positioning for future growth opportunities should result in long-term shareholder value. Leggett & Platt, Incorporated (NYSE:LEG)’s restructuring plan remains on track to achieve annual cost savings in the range of $50 million – $60 million by late 2025.
Analysts at Piper Sandler raised the shares of Leggett & Platt, Incorporated (NYSE:LEG) from an “Underweight” rating to a “Neutral” rating, increasing the target price from $11.00 to $13.00 on 30th October.
8) Sibanye Stillwater Limited (NYSE:SBSW)
Average Upside Potential: 12.6%
Sibanye Stillwater Limited (NYSE:SBSW) operates as a precious metals mining company. It produces gold platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, ruthenium, chrome, nickel, silver, cobalt, and copper.
Sibanye Stillwater Limited (NYSE:SBSW)’s entry into the battery metals sector and diversified portfolio are expected to act as critical tailwinds. The company continues to invest in future growth. The Keliber project, which is a lithium venture in Finland, demonstrates a significant opportunity to diversify into the battery metals market. In the current economic climate, the company has been taking a measured approach to project development. This entry places Sibanye Stillwater Limited (NYSE:SBSW) well to potentially benefit from the elevated demand for EV components.
The company’s diversified portfolio, which spans PGMs, gold, and battery metals, has placed it favorably to potentially benefit from different commodity cycles. This diversification strategy might offer a hedge against volatility in any single market, resulting in more stable overall performance.
Sibanye Stillwater Limited (NYSE:SBSW)’s presence in precious metals and battery materials is in tandem with long-term trends in traditional investment demand and a pivot to green energy. As the EV market grows, the company’s investments in battery metals should yield significant returns. Simultaneously, Sibanye Stillwater Limited (NYSE:SBSW)’s established position in PGMs and gold offers exposure to metals with industrial applications and investment appeal during an economic slowdown.
As per Wall Street analysts, the shares of Sibanye Stillwater Limited (NYSE:SBSW) have an average price target of $4.40.
7) Ryerson Holding Corporation (NYSE:RYI)
Average Upside Potential: 13.5%
Ryerson Holding Corporation (NYSE:RYI) processes and distributes industrial metals. It provides a line of products in carbon steel, stainless steel, alloy steels, aluminum, nickel, and red metals in numerous shapes and forms, such as coils, sheets, rounds, hexagons, and tubing.
In the fiscal third quarter of 2024, Ryerson Holding Corporation (NYSE:RYI) saw a net loss of $6.6 million, or diluted loss per share of $0.20, and adjusted EBITDA, excluding LIFO, of $21.0 million as counter-cyclical and seasonal bottoming continues. The decline in average selling prices and lower sales volumes impacted the company’s results. Wall Street analysts believe that Ryerson Holding Corporation (NYSE:RYI)’s focus on cost optimization should support its bottom line in the upcoming quarters.
Ryerson Holding Corporation (NYSE:RYI)’s $60 million cost reduction plan remains well underway, and it expects capital expenditures to decrease to $50 million in 2025. Also, strategic investments in the Shelbyville facility are expected to improve operational efficiency. The acquisition of Production Metals should expand aerospace and defense offerings. Furthermore, Ryerson Holding Corporation (NYSE:RYI) remains optimistic about future growth as the stainless market recovers.
The company has been pushing forward with strategic investments and cost-saving measures, which should yield future benefits. As Ryerson Holding Corporation (NYSE:RYI) concludes a 3-year investment cycle and has been optimizing operations, it remains confident in its ability to navigate the current industry landscape.
6) Materion Corporation (NYSE:MTRN)
Average Upside Potential: 17.9%
Materion Corporation (NYSE:MTRN)’s products consist of precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium, and copper-based alloys, among others. The principal raw materials it uses are beryllium, tantalum, aluminum, cobalt, copper, gold, nickel, palladium, platinum, ruthenium, silver, and tin.
Materion Corporation (NYSE:MTRN)’s long-term growth momentum is expected to be aided by recovery in the semiconductor industry. With the rebound in the semiconductor industry, the company should be able to capitalize on higher demand for its advanced materials solutions. This should result in revenue growth, which can equate to improved margins due to higher production volumes. Overall, the growth opportunities are expected to come from its proprietary technologies, strategic partnerships, or expansion into new market segments.
When semiconductor manufacturers increase production and invest in new technologies, Materion Corporation (NYSE:MTRN) might see opportunities to expand product offerings and deepen relationships with key customers. This might lead to accelerated revenue growth, margin expansion, and increased market share. The company remains focused on operational optimizations, which include facility closures that might improve margins. Materion Corporation (NYSE:MTRN) is also pursuing new programs in the space sector, pivoting from government to commercial customers.
The company expects a strong Q4 2024, with the continued benefit of its cost and footprint initiatives. Materion Corporation (NYSE:MTRN) anticipates delivering full-year 2024 adjusted earnings of between $5.20 – $5.40 per share. As per Wall Street analysts, the shares of the company have an average price target of $130.00.
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).
4) ATI Inc. (NYSE:ATI)
Average Upside Potential: 24.6%
ATI Inc. (NYSE:ATI) is engaged in producing and selling specialty materials and complex components. The HPMC segment produces various materials, such as titanium and titanium-based alloys, nickel- and cobalt-based alloys, and superalloys, among others. The AA&S segment produces zirconium and related alloys, such as hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, among others.
While ATI Inc. (NYSE:ATI) remains confident in long-term demand, it continues to address uncertainty throughout its aerospace customer base because of an industry-wide slowdown of the aircraft production ramp. This was exacerbated by work stoppage in the supply chain. ATI Inc. (NYSE:ATI) remains focused on addressing these challenges in demand and production and expects improved performance for the remainder of 2024 and beyond. Overall, the company is expected to benefit from the recovery of the aerospace industry.
The aerospace industry has been prioritizing fuel efficiency and reduced emissions. ATI Inc. (NYSE:ATI)’s advanced materials and manufacturing processes should play a critical role in developing lighter, more efficient aircraft components. The company expects higher demand and production ramp-up in Boeing’s 787 program through 2025 and it projects to maintain EBITDA margin levels into Q4 despite inefficiencies. In Q3 2024, ATI Inc. (NYSE:ATI)’s adjusted EPS came in at $0.60, and adjusted EBITDA sat at $185.7 million, or 17.7% of sales.
Its expertise in advanced materials and manufacturing processes offers a competitive edge in serving the needs of aircraft manufacturers and defense contractors. With air travel rebounding and airlines looking to modernize their fleets, demand for new aircraft and components should increase. ATI Inc. (NYSE:ATI)’s capabilities in producing critical engine and airframe components place it well to capitalize on this trend.
3) Rio Tinto Group (NYSE:RIO)
Average Upside Potential: 29.5%
Rio Tinto Group (NYSE:RIO) is a multinational mining and metals company, which is engaged in producing nickel and other minerals.
Wall Street analysts remain optimistic about Rio Tinto Group (NYSE:RIO)’s definitive agreements with GravitHy in a bid to ramp up the decarbonization of steelmaking in Europe. As a part of this collaboration, Rio Tinto Group (NYSE:RIO) will supply high-grade direct reduction iron ore pellets from Iron Ore Company of Canada (IOC) operations to GravitHy’s planned operation, and manage the sales and marketing of ultra-low carbon Hot Briquetted Iron (HBI) GravitHy produces.
The steel produced with low-carbon emissions is a critical component of the net-zero energy transition. As per Rio Tinto Group (NYSE:RIO), the production of iron and steel contributes ~8% of global carbon emissions and needs new technologies, redesigned processes, and new infrastructure to decarbonize.
This collaboration is aligned with Rio Tinto Group (NYSE:RIO)’s steel decarbonization strategy to ramp up the development of low-carbon Electric Arc Furnace steelmaking with high-grade iron as feedstock. This should enable Rio Tinto Group (NYSE:RIO) to reduce its Scope 3 emissions and create valuable decarbonized pathways for high-grade iron ore. Rio Tinto Group (NYSE:RIO) remains focused on its decarbonization efforts.
In this regard, the company signed an MoU with China’s Nanjing Iron and Steel Co. on decarbonization technology in ironmaking. Both firms would be exploring pelletizing using extracts from the Rio Tinto site in Pilbara, Western Australia. Rio Tinto Group (NYSE:RIO) has moved from strategy to action on decarbonization and continues to make clear progress towards its climate targets: a 50% reduction in emissions by 2030 and net zero by 2050.
These alliances point to Rio Tinto Group (NYSE:RIO)’s decarbonization efforts, which should result in a reduction of carbon footprint and reach climate goals.
2) Vale S.A. (NYSE:VALE)
Average Upside Potential: 47%
Vale S.A. (NYSE:VALE) is engaged in producing and selling iron ore, iron ore pellets, nickel, and copper in Brazil and internationally.
Wall Street analysts opine that Vale S.A. (NYSE:VALE)’s Iron Solutions segment should fuel its long-term growth. In Q3 2024, Vale S.A. (NYSE:VALE) achieved its highest iron ore production since 2018 and has also increased its 2024 production guidance to the upper end of the 323 to 330 million tons range. Also, the company’s C1 cash costs in iron ore declined by 17% QoQ and 6% YoY.
Vale S.A. (NYSE:VALE) plans to accelerate the execution of its premium iron ore strategy, leveraging on its unique endowment. The company possesses one of the richest iron ore resources in the world, and it aims to structurally produce ~350 million tons of iron ore. Out of this, 80% – 90% will be high-quality products, such as BRBF, Carajás, and agglomerated products. This flexible portfolio should enable Vale S.A. (NYSE:VALE) to support its clients in their decarbonization journey.
Also, the company remains focused on driving its nickel business. GEM Co., a Chinese battery-metal producer, and Vale S.A. (NYSE:VALE)’s Indonesian unit signed an agreement to establish a $1.42 billion nickel plant in the Southeast Asian nation, highlighting the country’s drive to boost processing. Industry experts remain optimistic about this development as Indonesia makes up for over half of global nickel production. The country has been seeking overseas investment in its processing industry to tap the increasing demand for EV batteries.
Wall Street analysts have an average price target of $15.39 on the shares of Vale S.A. (NYSE:VALE).
1) QuantumScape Corporation (NYSE:QS)
Average Upside Potential: 47.6%
QuantumScape Corporation (NYSE:QS) is a company that is engaged in developing advanced battery technology for EVs and other applications, such as technologies that can improve the energy density of nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) battery cells.
During its Q3 2024 earnings call, QuantumScape Corporation (NYSE:QS) announced the commencement of low-volume production of its B Sample cells, the QSE-5. Wall Street believes that this development is a critical milestone for the company, as these cells are the first anode-free solid-state lithium metal cells for automotive applications. The company has started low-volume production of B Sample QSE-5 cells with an energy density of 844 watt-hours per liter. The QSE-5 cells have the ability to charge from 10% to 80% in just over 12 minutes.
QuantumScape Corporation (NYSE:QS) also highlighted that a new separator production process, Raptor, should support QSE-5 production into 2025. Also, the company is collaborating with VW PowerCo under a licensing agreement that consists of a $130 million prepayment. This agreement is expected to lower capital requirements. QuantumScape Corporation (NYSE:QS) plans to leverage its partnership with VW PowerCo to improve its manufacturing capabilities and accelerate high-volume production.
Industry experts believe that, with the B Sample cells now in production and a healthy liquidity position, QuantumScape Corporation (NYSE:QS) seems to be on a path to scale up operations and deliver on its technological targets. Analysts at Truist Financial reaffirmed a “Hold” rating on the shares of QuantumScape Corporation (NYSE:QS), issuing a $7.00 target price on 25th October.
While we acknowledge the potential of QS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than QS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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