7 Best Metal Stocks to Buy According to Analysts

1. Alcoa Corporation (NYSE:AA)

Average Upside Potential: 37.19%

Number of Hedge Fund Holders: 47

Alcoa Corporation (NYSE:AA) is a prominent global manufacturer of aluminum, bauxite, and alumina. It is a vertically integrated business with properties in Australia, Europe, South America, and North America.

Alcoa Corporation (NYSE:AA) saw remarkable financial growth for Q4 ended December 31, 2024. Increased pricing for aluminum and alumina were the main drivers of its 20% sequential revenue increase. Net income more than doubled to $202 million from $90 million in Q3 2024, which is attributable to increased alumina exports and improved pricing that bolstered profitability. As a result, adjusted EBITDA also increased dramatically, rising 49% to $677 million.

Alcoa Corporation (NYSE:AA)’s strong manufacturing capabilities were demonstrated by record yearly production at five of its smelters. Furthermore, the company completed the acquisition of Alumina Limited in January 2024 and made significant progress in increasing its refining capabilities. As part of a larger strategic restructuring, Alcoa also reduced the size of its portfolio by selling its 25.1% stake in Ma’aden joint ventures and finally closing its Kwinana refinery in Australia. In addition, by renewing its alumina supply contract with Aluminium Bahrain (Alba) for an additional 10 years, the company ensured long-term stability and a consistent market for its goods.

Due to the issuance of $737 million in green bonds, Alcoa Corporation (NYSE:AA) concluded 2024 with $1.1 billion in cash. Having integrated with Alumina Limited, the company is still committed to increasing cost-effectiveness and growing its capacity for smelting aluminum. Thus, Alcoa is in a good position to maintain its rising trajectory, while continuing to optimize its cost and production by capitalizing on substantial cash reserves. Alcoa is among the best metal stocks to buy according to analysts.

Overall Alcoa Corporation (NYSE:AA) ranks first on our list of the Best Metal Stocks to Buy According to Analysts. While we acknowledge the potential of AA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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