13 Best Commodity Stocks To Buy According to Analysts

3. Cleveland-Cliffs Inc. (NYSE:CLF)

Upside Potential: 46.54%                                                        

North America’s Cleveland-Cliffs Inc. (NYSE:CLF) is a producer of iron ore pellets and flat-rolled steel. Although it functions through a single reportable market, steelmaking, it is divided into four operating segments based on varied products: tubular, tooling and stamping, steelmaking, and European operations. From extracted raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and subsequent finishing, stamping, tooling, and tubing, it is vertically integrated. Given the wide range of flat-rolled steel products it offers, it caters to a variety of other markets. Geographically, it works in the US, Canada, and other countries. The United States accounts for the majority of revenue. It provides steel to North America’s automotive industry.

Trillions of dollars have been allocated for infrastructure improvements and the establishment of sizable chip manufacturing facilities in the United States by President Biden’s Inflation Reduction Act, the Bipartisan Infrastructure Act, and the CHIPS and Science Act. These will create substantial long-term tailwinds for the revenue of the company. US hot roll steel prices dropped from $775 per ton in May to $745 in June, which can cause issues later on. However, the company has also disclosed plans to pay $2.5 billion to acquire Canadian steelmaker Stelco, which might increase its revenue base.

A positive shift in supply-side adjustments in the steel market led Seaport Global Securities to raise Cleveland-Cliffs Inc. (NYSE:CLF) from Neutral to Buy, with a $16.50 price objective suggested. Despite decreased third-quarter 2024 EBITDA expectations, the company believes that stabilizing steel prices will help the stock.

It is one of the Best Commodity Stocks since 7 analysts have given an average price target of $15.60 with an upside potential of 46.54% from the current stock price.