In this article, we will be taking a look at the 5 materials stocks to buy after the Fed’s new policy. To read our detailed analysis of these stocks, and recent policy measures and their consequences, you can go directly to see the 10 Materials Stocks to Buy After the Fed’s New Policy.
5. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders: 30
United States Steel Corporation (NYSE:X) produces flat-rolled and tubular steel products. The company operates mainly in North America and Europe.
Curt Woodworth, an analyst at Credit Suisse, holds an Outperform rating on United States Steel Corporation (NYSE:X) shares as of September 16. The analyst also placed a $37 price target on the shares.
This September, United States Steel Corporation (NYSE:X) estimated its third quarter adjusted net earnings per diluted share to be between $1.9 to $1.95. The company has a one-year dividend growth rate of 300%, with a dividend yield of 1.07%.
United States Steel Corporation (NYSE:X) was found among the 13F holdings of 30 hedge funds in the second quarter. Their total stake value was $617 million.
4. Air Products & Chemicals, Inc. (NYSE:APD)
Number of Hedge Fund Holders: 33
Air Products & Chemicals, Inc. (NYSE:APD) is an industrial gases company providing atmospheric gases, process and specialty gases, equipment, and services. The company is based in Allentown, Pennsylvania.
On August 15, Air Products & Chemicals, Inc. (NYSE:APD) was upgraded from Market Perform to Outperform at BMO Capital by analyst John McNulty. The analyst also raised his price target on the stock from $283 to $321.
Over the next three to five years, the EPS for Air Products & Chemicals, Inc. (NYSE:APD) is expected to rise by 11.54%. The company’s revenue growth rate year over year stands at 22.11%. It also has a dividend yield of 2.79%.
There were 33 hedge funds long Air Products & Chemicals, Inc. (NYSE:APD) in the second quarter, and 39 hedge funds long the stock in the previous quarter. Their total stake values were $375 million and $858 million, respectively.
Matrix Asset Advisors, an asset management company, mentioned Air Products & Chemicals, Inc. (NYSE:APD) in its second quarter 2022 investor letter. Here’s what the firm said:
“Air Products And Chemicals, Inc. (NYSE:APD) is a leading global industrial gas company with very stable returns. The company provides industrial gas in bulk liquid and compressed gas forms as well as via “on-site” dedicated facilities. Because many of its contacts are long-term take or pay agreements, the business is less cyclical than many industrial companies while benefiting during economic upswings. Air Products is a leader in hydrogen fueling systems and infrastructure, and the company sees great potential in the years ahead to extend its leadership. APD is a consistent dividend grower. Its current annual dividend of $6.48 provides a 2.7% yield on June 30.”
3. Corteva, Inc. (NYSE:CTVA)
Number of Hedge Fund Holders: 42
Corteva, Inc. (NYSE:CTVA) is a materials company operating in the agriculture business. The company is based in Indianapolis, Indiana.
Deutsche Bank’s David Begleiter holds a Buy rating on Corteva, Inc. (NYSE:CTVA) shares as of September 15. The analyst also raised his price target on the stock from $68 to $75.
This September, Corteva, Inc. (NYSE:CTVA) announced a new share repurchase program worth $2 billion. This is in addition to the company’s existing $1.5 billion share repurchase program. Over the next three to five years, Corteva, Inc.’s (NYSE:CTVA) EPS is expected to grow by 18.26%, and its dividend yield is 1.03%.
Out of 895 hedge funds tracked in the second quarter, 42 funds were long Corteva, Inc. (NYSE:CTVA). Their total stake value was $966 million.
2. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 50
The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients. The company operates in North America and internationally.
On August 3, The Mosaic Company (NYSE:MOS) was upgraded from Neutral to Buy by analyst P.J. Juvekar at Citigroup. The analyst also raised his price target on the stock from $57 to $61.
This August, The Mosaic Company (NYSE:MOS) announced that its July revenue grew exponentially compared to the July revenue a year ago. This July, the company brought in $391 million through its potash unit, compared to last year’s $191 million figure. The Mosaic Company (NYSE:MOS) has a one-year dividend growth rate of 33.33%, with a dividend yield of 1.25%.
The Mosaic Company (NYSE:MOS) had 50 hedge funds long its stock in the stock quarter, with a total stake value of $895 million. In comparison, 66 hedge funds were long the stock in the previous quarter, with a total stake value of $1.5 billion.
1. CF Industries Holdings, Inc. (NYSE:CF)
Number of Hedge Fund Holders: 52
CF Industries Holdings, Inc. (NYSE:CF) is a manufacturer and seller of hydrogen and nitrogen products. The company is based in Deerfield, Illinois.
Joshua Spector, an analyst at UBS, holds a Buy rating on CF Industries Holdings, Inc. (NYSE:CF) shares as of August 25. The analyst also raised his price target on the stock from $108 to $128.
CF Industries Holdings, Inc. (NYSE:CF) has a year-over-year revenue growth rate of 121.57%. Over the next three to five years, the company’s EPS is expected to rise by 6%. CF Industries Holdings, Inc. (NYSE:CF) also has a one-year dividend growth rate of 8.33%, with a dividend yield of 1.69%.
Our hedge fund data shows 52 hedge funds long CF Industries Holdings, Inc. (NYSE:CF) in the second quarter. Their total stake value was $1.3 billion.
Carillon Tower Advisers, an investment management firm, mentioned CF Industries Holdings, Inc. (NYSE:CF) in its first quarter 2022 investor letter. Here’s what it said:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. CF Industries (NYSE:CF) manufactures and distributes nitrogen fertilizer. The stock rose as Russia’s invasion of Ukraine accelerated already rising fertilizer prices.”
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