In this article, we will take a look at the 5 best materials stocks to invest in. To see more such companies, go directly to 15 Best Materials Stocks to Invest In.
5. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders: 54
The United States Steel Corporation (NYSE:X), commonly referred to as U.S. Steel, is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania. Its primary production operations are located in the United States of America and Central Europe. The company is presently enlarging its manufacturing capacity to fulfill the requirements of electric vehicles, having inaugurated a new facility in Arkansas in October for this purpose.
As of September 2023, 54 out of the 910 hedge funds surveyed by Insider Monkey had held a stake in United States Steel Corporation (NYSE:X). In the same quarter, David Greenspan’s Slate Path Capital was the largest stakeholder in our database due to its $233.5 million investment.
4. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 71
Linde plc (NYSE:LIN) is an international chemical company with a global presence. Originally founded in Germany, the company has been domiciled in Ireland since 2018 and is headquartered in the United Kingdom. Linde serves diverse end markets, including chemicals, energy and decarbonization, food and beverage, electronics, healthcare, manufacturing, and metals and mining.
Linde plc (NYSE:LIN) has highlighted an operating profit of $2.1 billion in its third-quarter 2023 results, marking a 15% increase compared to Q3 2022. The company also reported sales at $8.2 billion, a 7% year-on-year decrease, while underlying sales increased by 3%. Linde’s net income was $1.5 billion, and diluted earnings per share stood at $3.19, representing a 23% and 26% increase, respectively. Excluding Linde plc (NYSE:LIN)’s purchase accounting impacts and other charges, adjusted net income reached $1.78 billion, a 15% increase compared to the previous year, with adjusted EPS reaching $3.63, up 17% from the prior year.
During this year’s September quarter, 71 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Linde plc (NASDAQ:LIN). Alexander Mitchell’s Scopus Asset Management owned the largest stake among these which was worth $19.3 million.
3. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 71
The Sherwin-Williams Company (NYSE:SHW), headquartered in Cleveland, Ohio, is an American company primarily involved in the manufacturing, distribution, and sale of paints, coatings, floorcoverings, and related products. Its customer base includes professional, industrial, commercial, and retail clients, with a focus on North and South America as well as Europe.
Insider Monkey database took a look at 910 hedge fund portfolios for their third quarter 2023 investments and found out that 78 hedge fund investors had invested in The Sherwin-Williams Company (NYSE:SHW). Viking Global was the largest shareholder which owned 2.3 million shares of The Sherwin-Williams Company (NYSE:SHW) for about $604 million.
ClearBridge Large Cap Value Strategy made the following comment about The Sherwin-Williams Company (NYSE:SHW) in its Q2 2023 investor letter:
“We were fairly active in the quarter as market dislocations allowed us to be opportunistic, while focusing on companies with stronger moats, better pricing power, more predictable long-term growth and higher returns. In the materials sector we exited PPG Industries and initiated a position in The Sherwin-Williams Company (NYSE:SHW). While both companies operate in the paint and coating industry and are benefiting from improving margins as raw material prices have come down of late, we believe Sherwin-Williams’ dominant retail footprint affords it better pricing power through the cycle. The company provided conservative 2023 guidance and has been successfully gaining market share in the pro segment. While PPG has more European and industrial exposure, Sherwin-Williams’ residential and more domestic focus should also benefit the company as housing indicators appear to be troughing. Weak housing in the face of higher mortgage rates caused Sherwin-Williams stock to sell off in the first quarter, creating a compelling investment opportunity for long-term focused fundamental investors.”
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 73
Headquartered in the Freeport-McMoRan Center in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX), commonly known as Freeport, stands as a prominent American mining company. Renowned as the world’s largest molybdenum producer, it holds a significant position in copper production and operates the largest gold mine globally, the Grasberg mine situated in Papua, Indonesia.
Freeport-McMoRan Inc. (NYSE:FCX) reported a nearly 12.4% rise in net income attributable to common stockholders, reaching $454 million in Q3 2023 compared to $404 million in the corresponding period last year. The growth is attributed to increased sales volumes and copper production. Revenues for the quarter stood at $5.82 billion, marking a 16.3% increase from the $5 billion reported in the same quarter of 2022. Freeport-McMoRan Inc. (NYSE:FCX)’s consolidated production for Q3 included 1.1 billion pounds of copper, 532,000 ounces of gold, and 20 million pounds of molybdenum.
By the end of 2023’s third quarter, 73 out of the 910 hedge funds profiled by Insider Monkey had held a stake in the firm. Freeport-McMoRan Inc. (NYSE:FCX)’s biggest hedge fund investor is Ken Fisher’s Fisher Asset Management as it owns $2 billion worth of shares.
1. Teck Resources Ltd (USA) (NYSE:TECK)
Number of Hedge Fund Holders: 75
Teck Resources Ltd (USA) (NYSE:TCK) is a mining and mineral development company engaged in the extraction and exploration of various minerals, including copper, coal, zinc, and oil. Operating in Canada, Chile, Peru, and the US, the company is organized into five distinct business segments: Steelmaking, Coal, Copper, Zinc, Energy, and Corporate.
On November 13, Teck Resources Ltd (USA) (NYSE:TCK) announced plans to divest its entire interest in its steelmaking coal business, valuing it at $9.0 billion. The agreement entails selling a 77% stake to Glencore plc for $6.9 billion in cash and a minority stake to Nippon Steel Corporation. The proceeds from this transaction are intended to strengthen the company’s balance sheet, return cash to shareholders, and unlock value from its copper growth portfolio.
As of Q3 2023, Teck Resources Ltd (USA) (NYSE:TCK) was held by 75 hedge funds, with the total shares valued at $2.7 billion. Eric Mandelblatt’s Soroban Capital Partners held the most shares, with ownership of 10.1 million shares valued at $434 million.
You can also check out our articles on Abrams Capital 13F: 10 Best Value Stocks To Buy and 15 Michael Burry Stocks Other Hedge Funds Like Most.
