10 Best Recycling Stocks to Buy According to Hedge Funds

7. Commercial Metals Company (NYSE:CMC)

Market cap as of November 7: $7.15 Billion

Number of Hedge Fund Holders: 24

Headquartered in Irving, Texas, Commercial Metals Company (NYSE:CMC) engages in the manufacturing, recycling and fabricating of steel and metal products. It is one of the best recycling stocks to buy as it has been trending up, going by the 25% year-to-date gain.  The impressive performance stems from increased investor confidence in the company’s performance and strategic initiatives, allowing it to deliver shareholder value consistently.

While being a big player in the recycling of steel and other materials, Commercial Metals Company (NYSE:CMC) combines the recycling and processing of scrap metals, resulting in fabricated, finished steel products that transform the steel industry. Consequently, the company has recorded strong demand for its products from the US construction-related end markets.

Commercial Metals Company (NYSE:CMC) delivered solid fourth quarter and full-year results for its fiscal 2024 on October 17 2024, with management reiterating fundamentals remaining strong based on customer conversations and continuing healthy downstream. Net earnings in the quarter totaled $103.9 million or $0.90 a share on net sales of $2 billion, supported by solid demand for CMC’s products in North America.

While trading at a price-to-earnings multiple of 14.49, Commercial Metals Company (NYSE:CMC) appears to be trading at a discount. Additionally, it rewards income-focused investors with a 1.15% dividend yield, which reflects its commitment to returning value to shareholders. The board has already declared a $0.18 a share dividend, to be paid on November 14, representing a 13% year-over-year increase.