5 Best Aluminum Stocks To Buy

2. Constellium SE (NYSE:CSTM)

Number of Hedge Fund Holders: 29

Constellium SE (NYSE:CSTM) is a French company whose stock is trading on the NYSE. The Paris-based company develops and recycles aluminum products and solutions. Constellium SE (NYSE:CSTM) makes advanced alloys and engineered solutions for a range of applications, such as beverage cans, cars, airplanes, and more. It is one of the biggest aluminum companies in Europe.

In October 2022, the company posted strong third-quarter results. GAAP EPS in the period came in at €0.88, beating estimates by €0.46. Revenue in the quarter jumped 27% to reach €2.02 billion, beating analyst estimates by €50 million. Cash from operations in the quarter came in at €154 million while free cash flow totaled €74 million.

Constellium SE (NYSE:CSTM) is set to thrive because of its dominant position in the packaging market. Packing accounts for about 40% of the company’s sales, as of the first nine months of last year. As the world moves towards recyclable, environment-friendly packaging solutions, companies like Constellium will benefit.

As of the end of the third quarter, 29 hedge funds tracked by Insider Monkey reported having stakes in Constellium SE (NYSE:CSTM), compared to 27 funds in the previous quarter. The total value of the stakes held by these funds was $245 million.

Here is what ClearBridge Investments has to say about Constellium SE (NYSE:CSTM) in its Q2 2021 investor letter:

“We continue to find companies we believe fit this description at reasonable prices, such as Constellium, a new position in the second quarter. Constellium is an aluminum processor with a history of excess returns on capital above cost that has lagged during a major capacity increase to serve the auto industry, which should see strong demand given aluminum’s favorable environmental characteristics relative to steel.”