In this article, we will discuss the 10 Best Steel Stocks to Buy According to Billionaires.
The steel sector remains vital to global infrastructure and manufacturing, and continuous growth is expected. The Business Research Company reported that the steel processing market is expected to grow from $714.7 billion in 2024 to $733.2 billion in 2025 at a CAGR of 2.6%. This growth depends on industrial expansion, infrastructure investments, and demand from the construction, automotive, and energy sectors. Furthermore, innovations in steel alloys, smart infrastructure, and a shift toward electric vehicles (EVs) will drive future growth. This bright future projection comes on the back of a strong sector performance in the recent past.
The steel sector has delivered an 8.92% year-to-date (YTD) return, beating the broader market’s decline of over 4%. This shows investor trust and confidence amid infrastructure investments and solid demand. Furthermore, according to the World Steel Association, the automotive sector drives 12% of global steel demand. The shift to electric vehicles has boosted demand for lightweight, high-strength steel. S&P Global Mobility expects battery EV sales to reach 15.1 million units in 2025, up 30% from 2024, making up 16.7% of light vehicle sales. Due to higher steel consumption, this trend is expected to benefit steel producers investing in advanced materials.
However, decarbonization remains crucial, as steelmaking causes 7% of global greenhouse gas emissions, according to a report by PwC. Stricter rules are pushing producers toward greener methods, and by 2040, at least 25% of the global steel capacity is expected to be decarbonized. Coal-based furnaces are at risk of becoming stranded assets, with potential losses of up to $518 billion. Thus, many companies are switching to electric arc furnaces (EAFs), which can be carbon-neutral with renewable power. Furthermore, according to Research and Markets, the global steel scrap market, sized at 543.2 million metric tons in 2024, should reach 727.1 million metric tons by 2030 at a CAGR of 5.0%. Recycling 1,000 kg of steel saves 1,400 kg of iron ore, 740 kg of coal, and 120 kg of limestone. Thus, steel recycling drives sustainability by cutting energy use and consumption of raw materials.
Moreover, government policies continue to shape the industry, such as Trump’s 25% tariff on steel and aluminum imports. This was aimed at helping U.S. manufacturers but raised costs and impacted prices across consumer and industrial goods. Recently, a 25% tariff was imposed on Mexican steel melted and poured outside North America to target transshipments.
While regulations and trade policies will affect costs, the steel industry is set for growth in 2025, backed by infrastructure spending, automotive demand, and green investments. The ability to innovate and adapt to decarbonization will be key to driving long-term success.
Keeping this in mind, we delve into the 10 Best Steel Stocks to Buy According to Billionaires.
A steel coil being loaded into a facility for further processing and distribution.
Methodology
To curate a list of the 10 Best Steel Stocks to Buy According to Billionaires, we analyzed Insider Monkey’s exclusive database of billionaire stock holdings. We selected the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. ArcelorMittal S.A. (NYSE:MT)
Number of Billionaire Investors: 6
ArcelorMittal S.A. (NYSE:MT) is a major integrated steel and mining company with operations across the U.S., and Europe. The company manufactures various steel products, such as flat and long steel, as well as welded and seamless pipes. It also mines iron ore and coking coal, supplying vital sectors such as automotive, construction, and energy.
For the year that ended December 31, 2024, ArcelorMittal missed earnings targets with an EPS of $0.52 versus the expected $0.61. The company posted $7.1 billion in EBITDA, with $2.3 billion in adjusted net income and a 4.4% return on equity. ArcelorMittal S.A. (NYSE:MT) generated $2 billion in free cash flow and returned about $1.7 billion to shareholders.
The company made progress on key projects, finishing the Vega coal mill in Brazil and a hot strip mill in Mexico. ArcelorMittal S.A. (NYSE:MT) is setting up an electric furnace in Calvert, Alabama, to boost automotive steel output. It invested $1.3 billion in growth projects and spent $0.6 billion on acquisitions, including a 28% stake in Vallourec. However, three projects in Europe and Brazil have been pushed to 2026. The company also expanded its Liberian mining venture to 20 million tons, bolstering its raw material sources.
For 2025, ArcelorMittal S.A. (NYSE:MT) forecasts slight demand growth, with steady North American automotive demand but a slight decline in Europe. Risks include the 25% U.S. tariffs on steel imports from Canada and Mexico and increased European import competition. However, despite these challenges, MT is one of the best steel stocks to consider, backed by strategic investments and strong operational cash flow.
9. Tenaris S.A. (NYSE:TS)
Number of Billionaire Investors: 7
Tenaris S.A. (NYSE:TS) is a top producer of seamless steel pipes for the global oil and gas sector. The company delivers Oil Country Tubular Goods (OCTG) and line pipe products across North America, Latin America, and the Middle Eastern market.
Amid a tough pricing environment, Tenaris S.A. (NYSE:TS) reported revenue of $2.8 billion for Q4 ended December 31, 2024. This marked a 17% drop year-over-year and a 2% decrease from the previous quarter, driven by lower sales volumes and declining OCTG prices in North America. Despite this, EBITDA rose 6% sequentially to $726 million, aided by cost cuts and partial reversal of a provision tied to Usiminas acquisition disputes. Furthermore, net cash dipped to $3.6 billion after $454 million in share buybacks, $299 million in dividends, and $182 million in capital spending.
Tenaris S.A. (NYSE:TS) experienced strong drilling growth in Argentina’s Vaca Muerta shale. This was countered by Mexico’s sharp downturn due to Pemex’s lowered production goals and fewer rigs. Furthermore, the North American OCTG supply-demand balance improved as imports fell to roughly 30% and inventories normalized to about six months.
Meanwhile, the Middle Eastern market held steady, with Saudi Arabia, the UAE, and Qatar showing notable growth in gas drilling. Tenaris secured a $250 million order for Saudi Aramco’s CCS project, covering 300 km of steel pipelines with delivery starting in Q3 2025, strengthening its regional footprint.
Looking ahead, Tenaris S.A. (NYSE:TS) expects stable margins in Q1 2025, with possible gains in the first half of the year. In addition, the 25% steel import tariffs might raise OCTG pricing in the U.S., increasing profits. Thus, with solid cash reserves, Tenaris is one of the best steel stocks for investors to consider.
8. Worthington Steel, Inc. (NYSE:WS)
Number of Billionaire Investors: 7
Worthington Steel, Inc. (NYSE:WS) is a North American steel processor, focusing on carbon flat-rolled steel, tailor-welded blanks, and electrical steel lamination stampings. The company caters to various markets, such as the automotive, construction, heavy trucking, and energy sectors.
For Q2 ended November 30, 2024, Worthington Steel, Inc. (NYSE:WS) earned $12.8 million ($0.25 per share), compared to a $6 million loss ($0.12 per share) in the same period last year. Adjusted EBITDA increased to $30.6 million from $23 million the previous year, due to better gross margins despite reduced volumes and prices.
Yet, quarterly revenue fell 9% year-over-year to $739 million, with a 3% drop in shipments. This drop stemmed mainly from softer demand in the automotive and construction sectors. On the plus side, the company saw a reduction in inventory holding losses, improving by $21.4 million year-over-year.
Worthington Steel, Inc. (NYSE:WS) pushed its growth plan by buying a 52% stake in Sitem Group, boosting its reach in Europe’s expanding electrical steel lamination market. The company also made operational gains, reducing scrap waste and fine-tuning inventory through new analytics tools.
Looking ahead, Worthington Steel, Inc. (NYSE:WS) expects modest growth in construction, with a possible upturn later in the year. Therefore, with robust business expansion and operational improvements, Worthington Steel is well-positioned as one of the best steel stocks.
7. Gerdau S.A. (NYSE:GGB)
Number of Billionaire Investors: 8
Gerdau S.A. (NYSE:GGB) is a global steel producer with operations spanning Brazil, North America, and South America. The company makes semi-finished steel items, long-rolled steel, flat steel, and specialty steel for the building, automotive, energy, mining, and infrastructure industries. Simultaneously, Gerdau is focusing on sustainability by boosting its clean energy output to help reduce carbon emissions.
For the year ended December 31, 2024, Gerdau S.A. (NYSE:GGB) reported an adjusted EBITDA of roughly $2.16 billion, fueled by strategic cost reductions, mainly in Brazil. The company saved about $300 million while keeping a healthy balance sheet and investing around $1.24 billion in capital projects. Stockholders received strong returns with nearly $580 million paid through dividends and stock repurchases.
Gerdau S.A. (NYSE:GGB) continued growing its energy business by buying two small hydropower plants in Brazil to trim costs and support long-term green goals. The company has also streamlined its financial reporting into three segments: Brazil, North America, and South America, to match market patterns more effectively.
Going forward, Gerdau S.A. (NYSE:GGB) expects improved demand in North America, backed by commercial construction and infrastructure work. The company foresees higher use of its U.S. facilities due to trade protections, including a 25% steel import tariff.
Therefore, Gerdau S.A. (NYSE:GGB) is well-placed for future growth with its cost-effective structure and smart investments, making it one of the best steel stocks.
6. Commercial Metals Company (NYSE:CMC)
Number of Billionaire Investors: 8
Commercial Metals Company (NYSE:CMC) is a global steel and metal producer, recycler, and fabricator with sites across North America and Europe. The company makes long steel products like rebar and merchant bars, catering to the infrastructure, industrial, and residential construction sectors.
Despite solid operations, Commercial Metals Company (NYSE:CMC) reported a $175.7 million net loss in Q1 2025, ended November 30, 2024, mainly from a $264 million after-tax litigation charge. Excluding this, adjusted earnings stood at $88.5 million, or $0.78 per share. Quarterly revenue reached $1.9 billion, while core EBITDA totaled $210.7 million, showing an 11% EBITDA margin.
North American steel units faced price pressures due to market fluctuations, though rebar demand stayed firm. Meanwhile, CMC’s European steel division returned to profit, helped by an annual CO2 credit allocation, but excess German imports affected margins.
Commercial Metals Company (NYSE:CMC) is growing its production capacity to boost its market standing. The Arizona 2 micro-mill is scaling up to make 350,000 tons of rebar and 150,000 tons of merchant steel annually. The company is also building a new steel plant in West Virginia to expand in the Northeast, where it had little presence.
For the near future, Commercial Metals Company (NYSE:CMC) expects a 5-10% seasonal rise in steel shipments between Q1 and Q2 of the fiscal year 2025. Infrastructure backlogs and residential projects will drive long-term demand, yet European operations face structural issues and market uncertainty delays new contracts, pushing down steel prices. Despite this, Commercial Metals Company ranks as one of the best steel stocks.
5. Reliance, Inc. (NYSE:RS)
Number of Billionaire Investors: 10
Reliance, Inc. (NYSE:RS) operates as a leading metals service center, providing various metal products, including carbon steel, stainless steel, aluminum, and specialty alloys. The company serves critical sectors such as non-residential construction, manufacturing, transportation, aerospace, and energy, with about half of its orders involving value-added processing.
Although Reliance, Inc. (NYSE:RS) faced many challenges, it outpaced industry trends in Q4, which ended December 31, 2024. Same-store tons sold grew 2.8% year-over-year, while total tons sold jumped 6.7%, far exceeding the industry’s 3.6% drop. However, lower steel prices squeezed margins, resulting in Q4 earnings of $2.22 per share, which included a negative LIFO adjustment. The company expects a 6-8% increase in tons sold for Q1 2025 due to steady demand in the construction and manufacturing markets.
Moreover, Reliance, Inc. (NYSE:RS) is investing $325 million in 2025, mainly to upgrade processing capabilities and expand existing facilities. The company expects stable demand across key markets, with infrastructure spending and manufacturing reshoring offering long-term growth opportunities. Also, potential tariffs in March 2025 might reduce imports, supporting domestic steel prices.
However, despite economic uncertainty and fluctuating steel prices, Reliance, Inc. (NYSE:RS) is well-positioned to handle market shifts with its solid balance sheet and strategic focus on value-added processing. With ongoing growth in data center construction, electrical grid updates, and defense projects, RS is one of the best steel stocks.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Billionaire Investors: 10
Cleveland-Cliffs Inc. (NYSE:CLF) operates as a major flat-rolled steel producer with facilities across the U.S. and Canada, serving global markets. The company produces various steel products, including hot-rolled, cold-rolled, galvanized, electrical, and stainless steel. It supports the automotive, construction, and manufacturing sectors through a vertically integrated supply chain with iron ore and scrap processing capabilities.
In a competitive 2024 steel market, Cleveland-Cliffs Inc. (NYSE:CLF) reported an $81 million adjusted EBITDA loss for Q4, which ended on December 31, 2024. This stemmed from poor automotive demand and declining commodity steel prices. Furthermore, quarterly shipments reached 3.8 million tons, showing the effect of idled C6 blast furnaces and seasonal demand slumps.
However, the company forecasts Q1 2025 shipments to top 4 million tons, driven by stronger orders, better mill usage, and the full impact for the quarter from its Stelco purchase. Each $100 per ton increase in hot-rolled coil (HRC) prices could add roughly $1 billion to yearly revenue, boosting cash flow and profits.
Cleveland-Cliffs Inc. (NYSE:CLF) benefits from the new 25% steel import tariffs that should strengthen domestic pricing. The company views this policy as essential against foreign steel overcapacity and global environmental production disparities. Its $120 million Stelco synergy plan remains on schedule for year-end completion, with more operational improvements under review. In addition, the company issued senior unsecured notes, strengthening its finances.
For 2025, Cleveland-Cliffs Inc. (NYSE:CLF) expects a strong recovery backed by solid automotive orders and rising steel prices. With strategic positioning and growing demand, Cleveland-Cliffs stands as one of the best steel stocks.
3. Nucor Corporation (NYSE:NUE)
Number of Billionaire Investors: 12
Nucor Corporation (NYSE:NUE) is America’s top steel producer, with operations spanning steel mills, products, and raw materials. The company produces various types of steel, including hot-rolled, cold-rolled, galvanized, structural steel, and bar steel, for the building, automotive, and energy sectors. Nucor also trades steel, distributes rebar, and runs a raw materials division that processes scrap and makes direct-reduced iron (DRI).
Despite weaker steel prices, Nucor earned $287 million ($1.22 per share) in Q4 ended December 31, 2024. Annual profits hit $2 billion ($8.46 per share), while Q4 EBITDA reached $751 million, adding to the annual total of $4.4 billion. Moreover, steel and product shipments stayed robust, backed by steady demand and minimal holiday disturbances.
However, the steel mills unit saw pre-tax earnings drop 45% quarter-over-quarter from lower prices and tighter metal margins. The steel products segment fared better with just a 5% earnings dip, helped by stable backlogs and solid nonresidential building demand.
Nucor Corporation (NYSE:NUE) pushes ahead with major growth projects, including its West Virginia sheet mill, set to start in late 2025. Moreover, the company is adding galvanizing lines, rebar micro mills, and automated tower manufacturing plants to strengthen its position in the infrastructure and telecom markets.
For early 2025, Nucor expects modest steel demand growth, with stronger upticks in the second half. Infrastructure and housing remain key growth drivers, aided by supportive policy changes. Yet global steel overcapacity and unfair imports pose threats, prompting Nucor to push for tougher trade rules. Despite these issues, as one of the best steel stocks, Nucor Corporation (NYSE:NUE) remains well-positioned for the future.
2. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Billionaire Investors: 12
Steel Dynamics, Inc. (NASDAQ:STLD) is one of the biggest steel producers and metal recyclers in the U.S. The company runs four main divisions: Steel Operations, Metals Recycling, Steel Fabrication, and Aluminum Operations. It manufactures hot-rolled, cold-rolled, and coated steel for the building, automotive, manufacturing, transportation, and energy markets.
Despite tough market conditions in 2024, Steel Dynamics, Inc. (NASDAQ:STLD) reported solid financial results. The company earned an operating income of $1.9 billion and a net income of $1.5 billion ($9.84 per diluted share) for the year ended December 31, 2024. Meanwhile, cash flow from operations stood at $1.8 billion, with strong liquidity of $2.2 billion.
For Q4 2024, steel shipments fell 5% from the previous quarter due to seasonal factors and an unexpected outage. Quarterly revenue was $3.9 billion, with an operating income of $238 million. Average steel prices dropped by $48 per ton, reflecting broader market trends.
Steel Dynamics, Inc. (NASDAQ:STLD) made major strategic progress in 2024 as the company expanded its new flat-rolled steel coating lines, adding 1.1 million tons of higher-margin products. Its Sinton mill improved reliability, reaching over 80% capacity by year-end and nearing 90% in early 2025.
In the future, the company expects stronger demand for its fabrication and flat-rolled products, backed by infrastructure spending and reshoring. Despite market hurdles, Steel Dynamics, Inc. (NASDAQ:STLD) expects its aluminum segment to become EBITDA-positive by H2 2025. The company projects that rolling mill utilization will hit 50% in 2025 and 75% in 2026, setting it up for future growth.
1. United States Steel Corporation (NYSE:X)
Number of Billionaire Investors: 14
United States Steel Corporation (NYSE:X) manufactures and sells flat-rolled and tubular steel products in North America and Europe. The company runs four segments: North American Flat-Rolled, Mini Mill, U.S. Steel Europe (USSE), and Tubular Products.
United States Steel Corporation (NYSE:X) faced challenges in the market and recorded 2024 net earnings of $384 million, down from $895 million in 2023. This drop resulted from weaker steel prices and reduced demand. Despite this, adjusted EBITDA reached $1.366 billion, reflecting efficient operations amid industry challenges.
For Q4 ended December 31, 2024, United States Steel Corporation (NYSE:X) posted an $89 million net loss, worse than the $80 million loss in Q4 2023. Lower prices and lower demand impacted the results, especially in Europe. Higher volumes in Mini Mill and cost control in North American Flat-Rolled helped limit further losses.
Furthermore, strategic moves boosted key segments as Mini Mill saw its first shipments from Big River 2 in December, offsetting maintenance at Big River Steel. Additionally, North American Flat-Rolled achieved a 10% EBITDA margin through a smart commercial strategy and cost management. Although United States Steel Corporation (NYSE:X) struggled with weak pricing and demand, the Tubular sector improved due to higher shipments.
In the future, United States Steel Corporation (NYSE:X) expects Q1 2025 adjusted EBITDA to be between $100 million and $150 million. An increase in Big River 2 shipments should improve Mini Mill results. However, seasonal logistics issues in mining may affect the Flat-Rolled segment early in 2025. European operations could experience slight gains despite ongoing demand pressures. The company expects positive free cash flow in 2025 as Mini Mill operations grow, positioning it as a strong contender among the best steel stocks.
Overall, United States Steel Corporation (NYSE:X) ranks first on our list of the Best Steel Stocks to Buy According to Billionaires. While we acknowledge the potential of X, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than X but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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