In this article, we will be taking a look at the 5 best metal stocks to invest in. To read our detailed analysis of these stocks and the metals sector, you can go directly to see the 11 Best Metal Stocks to Invest In.
5. Reliance Steel & Aluminum Co. (NYSE:RS)
Number of Hedge Fund Holders: 28
Reliance Steel & Aluminum Co. (NYSE:RS) is a diversified metal solutions provider. It is also the metals service center company in the US, Canada, and internationally. The company is based in Los Angeles, California.
On August 15, Katja Jancic at BMO Capital initiated coverage of Reliance Steel & Aluminum Co. (NYSE:RS) shares with an Outperform rating. The analyst also placed a $230 price target on the stock.
Reliance Steel & Aluminum Co. (NYSE:RS) has a dividend yield of 1.9% as of October 9. The company has also managed to raise its dividend consistently over the past 11 years.
There were 28 hedge funds long Reliance Steel & Aluminum Co. (NYSE:RS) in the second quarter. Their total stake value was $618 million.
4. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Hedge Fund Holders: 30
Steel Dynamics, Inc. (NASDAQ:STLD) is a steel producer and metal recycler in the US. The company is based in Fort Wayne, Indiana.
Emily Chieng at Goldman Sachs upgraded shares of Steel Dynamics, Inc. (NASDAQ:STLD) from Neutral to Buy on October 6. The analyst also placed an $88 price target on the stock.
Goldman Sachs noted this October that Steel Dynamics, Inc. (NASDAQ:STLD) has underappreciated earnings potential that can drive consensus earnings revisions higher in the coming quarters. The company’s dividend yield is 1.66% as of October 19, and it has consistently increased over the past nine years.
Steel Dynamics, Inc. (NASDAQ:STLD) was found among the 13F holdings of 30 hedge funds in the second quarter, and 29 hedge funds in the previous quarter. Their total stake values were $366 million and $390 million, respectively.
3. United States Steel Corporation (NYSE:X)
Number of Hedge Fund Holders: 37
United States Steel Corporation (NYSE:X) is a producer of flat-rolled and tubular steel products. The company operates in North America and Europe, and is based in Pittsburgh, Pennsylvania.
Morgan Stanley’s Carlos De Alba holds an Equal Weight rating on United States Steel Corporation (NYSE:X) shares as of October 4. The analyst also placed a $21.50 price target on the stock.
United States Steel Corporation (NYSE:X) had an EPS of $3.86 in the second quarter of 2022, in line with estimates. The company’s revenue was $6.29 billion, beating estimates by $468.84 million.
Our hedge fund data shows 37 funds long United States Steel Corporation (NYSE:X) in the second quarter, with a total stake value of $1.7 billion.
2. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 48
Cleveland-Cliffs Inc. (NYSE:CLF) is a flat-rolled steel producer operating in North America. The company provides carbon steel products and tubular components.
A Buy rating was reiterated on shares of Cleveland-Cliffs Inc. (NYSE:CLF) on October 6 by analyst Emily Chieng at Goldman Sachs. She also placed a $19 price target on the stock.
Cleveland-Cliffs Inc. (NYSE:CLF) jumped by 8.5% on October 3, demonstrating its second strong gain in a row. The company’s revenue in the second quarter was $6.34 billion, beating estimates by $226.68 million.
In total, 48 hedge funds were long Cleveland-Cliffs Inc. (NYSE:CLF) in the second quarter, while 36 funds were long the stock in the previous quarter. Their total stake values were $1.6 billion and $952 million, respectively.
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 68
Freeport-McMoRan Inc. (NYSE:FCX) is a mining company operating in North America, South America, and Indonesia. It explores for metals like copper, gold, silver, and molybdenum, among other minerals.
Abhi Agarwal at Deutsche Bank has a Hold rating on shares of Freeport-McMoRan Inc. (NYSE:FCX) as of October 5. The analyst also placed a $30 price target on the stock.
This September, Freeport-McMoRan Inc. (NYSE:FCX) declared a quarterly dividend of $0.15 per share. The company saw its highest rise in share price this September since November 2021, rising by 7.9% in light of copper prices jumping in the market.
There were 68 hedge funds long Freeport-McMoRan Inc. (NYSE:FCX) in the second quarter. Their total stake value was $4.1 billion.
Carillon Tower Advisers, an investment management company, mentioned Freeport-McMoRan Inc. (NYSE:FCX) in its second quarter 2022 investor letter. Here’s what the firm said:
“Mining company Freeport-McMoRan Inc. (NYSE:FCX) fell with the price of copper as emerging market credit and rate hike jitters weighed on metal prices. Copper is projected to be in very short supply into the end of the decade due to a scarcity of new mines being developed and the increasing use of renewable energy, but economic recession fears, a slowdown in construction in China, and a slowing housing market in the United States dented the stock price.”
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