In this article, we will discuss the 7 Best Metal Stocks to Buy According to Analysts.
The metals industry, which supplies vital materials for manufacturing, renewable energy, and construction, is a major contributor to the expansion of the world economy. This market has grown remarkably in the last several years. The Business Research Company projects that the worldwide metals market will increase by 5.9%, from $4,392.33 billion in 2024 to $4,651.03 billion in 2025. Growing demand for industrial and precious metals, particularly in the construction, automotive, and renewable energy industries, is driving this growth.
Since copper is still one of the most sought-after metals, the growing demand for the metal is a major factor in this development. The copper market is projected to increase by 7.8% during the period 2024-2025, reaching $190.72 billion, according to The Business Research Company. This increase is mostly attributable to the growth of infrastructure worldwide and the extensive use of copper in electrification projects.
At the same time, there is a high demand for metals like copper, aluminum, and steel, especially from the expanding construction sector. According to the U.S. Census Bureau, the value of monthly construction activities in the United States increased by 4.3% on a YoY basis in December 2024. Thus, the global acceleration of infrastructure projects is anticipated to support the metals market for the foreseeable future due to this increasing demand.
Along with industrial metals, precious metals have done noticeably better than the overall market, driven by investor demand for safe-haven assets and inflationary fears. For example, gold ETFs had their greatest gain since 2010 in 2024, rising a whopping 26%. It is anticipated that this trend will continue into 2025 if inflationary pressures continue to drive demand for gold as a protective investment. Similarly, as of February 26, 2025, silver futures experienced a 40.34% year-over-year rise while gold futures produced an impressive 43.64% return, as reported by S&P Global. These figures highlight the rising demand for gold and silver as investments against an unstable economic landscape.
Simultaneously, the metals sector is undergoing a surge in sustainability efforts and technological breakthroughs. Metal production is being revolutionized by innovations such as generative AI in additive manufacturing, which is making it more sustainable and efficient. On the other hand, the global market for recycled scrap metal is expected to rise at a robust 6.4% annual growth rate from $70.5 billion in 2024 to $75.5 billion in 2025. By 2035, the recycling industry is predicted to account for 72.5% of the market value as environmental restrictions and sustainability drive companies to use recycled metals, especially ferrous metals.
Beyond technological innovations, metals like lithium, copper, and zinc are at the center of industry transformation as a result of the move toward cleaner energy and electrification. Lithium is becoming more affordable and widely available because of new extraction techniques, which are enhancing its use in energy storage applications. For instance, the lithium market is expected to expand by 16.3%, from $7.75 billion in 2024 to $9.01 billion in 2025. Meanwhile, as reported by Zinc.org, the demand for zinc in solar power is predicted to reach 568,000 tons by 2030, demonstrating the rising significance of zinc in renewable energy.
Therefore, the overall metal market is experiencing strong demand, technological breakthroughs, and increased focus on sustainability and clean energy initiatives. Therefore, experts are enticed to pick the best metal stocks with the potential for rapid growth to capitalize on bright future prospects of the market.
With this, let’s now move on to our list of the 7 Best Metal Stocks to Buy According to Analysts.
Our Methodology:
To curate our list of the 7 Best Metal Stocks to Buy According to Analysts, we picked the top companies having a substantial exposure to extraction, processing, and manufacturing of metals. Furthermore, we made sure that we pick companies with strong market capitalization. Finally, we ranked the stocks based on the upside potential predicted by a healthy number of analysts, as of writing this article.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A line of miners in an open-cut mine, surrounded by the shiny glint of precious metals.
7. Newmont Corporation (NYSE:NEM)
Average Upside Potential: 19.42%
Number of Hedge Fund Holders: 69
Newmont Corporation (NYSE:NEM), the largest gold miner in the world, has developed a diverse portfolio that includes holdings in Australia, Africa, South America, and North America. The company has assets in the United States, Canada, Mexico, and the rest of the world. In addition to its gold activities, it explores copper, silver, zinc, and lead. By combining Newcrest’s assets, Newmont has made great progress in 2024, streamlining its operations and freeing up resources to fortify its Tier 1 gold and copper holdings. Additionally, the company sold off non-core assets in order to concentrate on its most important assets during the year.
The financial performance of Newmont Corporation (NYSE:NEM) improved amid this change in strategy. Strong production levels and rising gold prices helped the company achieve a healthy $3.4 billion in net profits for the year that ended December 31, 2024. In addition to reaching a total attributable production of 6.8 million gold ounces and 1.9 million gold-equivalent ounces (GEOs) from base metals, the company’s adjusted EBITDA increased to $8.7 billion. With $1.4 billion less in debt and $3.6 billion in cash at the end of the year, Newmont’s financial health has improved a great deal.
With an eye toward the future, Newmont Corporation (NYSE:NEM) keeps refining its holdings, concentrating on its most valuable and important properties. The company plans to sell six non-core assets in 2025, with a maximum anticipated profit of $4.3 billion, which will include $2.5 billion in cash by the middle of the year. A dedication to compensating shareholders is combined with this streamlined approach. Newmont reinforced its dedication to shareholder returns in 2024 by repurchasing $1.2 billion worth of shares and paying out $1.1 billion in dividends.
Newmont Corporation (NYSE:NEM) predicts 5.9 million ounces of gold will be produced in 2025, with an estimated total cost of $1,630 per ounce. As its base metal prospects have expanded, the company’s copper reserves have increased to surpass 13.5 million tons. With $3.1 billion set aside for sustaining and development capital, Newmont is concentrating on increasing production efficiency and prolonging mine life in order to set itself up for long-term success. The company continues to lead the mining industry and is well-positioned for future success as it takes advantage of rising base metal prospects and high gold prices.
6. Teck Resources Limited (NYSE:TECK)
Average Upside Potential: 21.43%
Number of Hedge Fund Holders: 66
Teck Resources Limited (NYSE:TECK), an industry leader in diversified mining, operates in Chile, Peru, and Canada. Although coal, copper, and zinc are among its primary products, the company is undergoing a major transition. In an effort to slowly lessen its need for coal used in steel production and satisfy the rising demand brought on by the global energy transition, Teck is shifting its focus to copper.
This shift in strategy is already beginning to provide encouraging outcomes. Teck Resources Limited (NYSE:TECK) reported a 40% increase in its sales during the year ended December 31, 2024. A 50% increase in copper output, which reached 446,000 tons, drove this growth. Additionally, stable operations at the Red Dog mine also contributed to a strong increase in zinc output, sales of which rose 24% during Q4 on a YoY basis. The company’s Adjusted EBITDA increased by 104.3% to $2 billion due to strong base metal prices, and its balance sheet was further strengthened by operational cash flow of $1.9 billion.
Furthermore, Teck Resources Limited (NYSE:TECK) is speeding its transition to a pure-play copper producer to capitalize on this momentum. The company was able to concentrate more on its copper portfolio after recently finishing the spin-off of Elk Valley Resources. Additionally, it has planned $1.0-1.2 billion in capital expenditures for 2025, for the early stages of the San Nicolás copper-zinc project in Mexico and the expansion of its QB2 project in order to facilitate this shift. Keeping up with its capital allocation strategy, Teck also paid $1.25 billion through share repurchases and dividends.
Looking ahead, the company is still dedicated to its expansion goals. It plans to invest in its resource growth and exploration in 2025, with an emphasis on increasing the output of zinc and copper. Teck Resources Limited (NYSE:TECK) is in a good position to keep generating wealth for shareholders in the years to come because of its solid asset base and obvious shift towards base metals, which are in high demand.
5. Vale S.A. (NYSE:VALE)
Average Upside Potential: 22.60%
Number of Hedge Fund Holders: 36
Vale S.A. (NYSE:VALE) is an important player in the market for base metals, such as copper and nickel, and one of the biggest producers of iron ore worldwide. The company’s primary business is still iron ore, but it is aggressively increasing its base metals sector to meet the rising demand driven by the global energy revolution.
Vale S.A. (NYSE:VALE) showed resilience in its financial performance for the Q4 ended December 31, 2024, despite the drop in iron ore prices. Compared to $13.05 billion during the same time in 2023, the company’s reported net operating revenue for this period was $10.12 billion. However, strong growth in the base metals segment counterbalanced the decline in iron ore. Furthermore, higher production at the Salobo mine helped boost copper income to $964 million, while the Onça Puma mine’s constant output kept nickel revenue at $1.07 million.
Despite the general drop in sales, Vale S.A. (NYSE:VALE) reported adjusted EBITDA of $3.79 billion, which was attributable to a notable surge in copper output, which hit 200 kilotons, the highest level since 2020. This achievement supports the company’s continued efforts to expand its base metals holdings. To strengthen the company’s long-term growth plan, Vale simultaneously started the “New Carajás” program, a daring effort intended to speed up exploration in one of the richest iron ore locations in the world.
Looking ahead, Vale S.A. (NYSE:VALE) is still moving forward with important expansion initiatives. By adding 30 million tons of low-cost iron ore capacity, the Capanema and Vargem Grande expansions are strengthening Vale’s iron ore operations. Additionally, the company has reinforced strategic alliances by starting the development of a new concentration facility in Oman, which is anticipated to start operations in 2027, and purchasing a 15% interest in Minas-Rio.
By continuing the repurchase program and approving $2 billion in dividends, Vale S.A. (NYSE:VALE) has shown confidence in its capacity to generate cash flow and maintain financial stability. To maintain its position as a leader in the mining sector, the company is well-positioned to strike a balance between cost-effectiveness, value generation, and production growth in 2025.
4. Barrick Gold Corporation (NYSE:GOLD)
Average Upside Potential: 24.54%
Number of Hedge Fund Holders: 44
Barrick Gold Corporation (NYSE:GOLD) is a global mining company that operates in North America, South America, Africa, and the Middle East. With significant assets like Lumwana in Zambia and the Twiga joint venture in Tanzania, Barrick has solidified its position in the copper industry, despite its major focus on gold production. The company’s varied portfolio, which includes well-known mines like Nevada Gold Mines, Kibali in the Democratic Republic of the Congo, and Pueblo Viejo in the Dominican Republic, provides a well-rounded production base.
Strong operational success drove Barrick Gold Corporation (NYSE:GOLD)’s exceptional financial achievements in Q4 2024. While operational cash flow rose 18% to $1.4 billion for the quarter and $4.5 billion for the year, the company also reported a 50% rise in net earnings per share, hitting $1.26 per share. The company’s strong financial health was demonstrated by an increase of 104% in free cash flow, which reached $1.3 billion.
Barrick Gold Corporation (NYSE:GOLD)’s continued investments in its resource base, mainly from expansions at Lumwana and Reko Diq, contributed to the company’s growth by adding 12.7 million ounces of gold and 13 million tons of copper reserves. As a result of these efforts, the company’s profitability has increased even further. Mine efficiencies have resulted in a 3% decrease in the cost of sales and a 5% reduction in overall cash expenses.
Looking ahead, Barrick Gold Corporation (NYSE:GOLD) is advancing with its Reko Diq project in Pakistan, which is anticipated to begin producing 200,000 tons of copper per year in 2028. The project’s first phase is expected to cost between $5.6 billion and $6 billion, with an expected $74 billion in free cash flow to be generated over the following 36 years. Together, with Barrick’s continued growth in Zambia and Tanzania, this project solidifies the company’s long-term position in copper and gold sectors, extending its worldwide reach and guaranteeing its position as an important player in the metal market.
3. Freeport-McMoRan Inc. (NYSE:FCX)
Average Upside Potential: 28.56%
Number of Hedge Fund Holders: 88
Freeport-McMoRan Inc. (NYSE:FCX) is a prominent producer of copper, gold, and molybdenum, with a significant presence in both North and South America, as well as Indonesia. Being a significant participant in the copper market, the company stands to gain from growing demand, which is mostly being driven by infrastructure and green energy projects.
Freeport-McMoRan Inc. (NYSE:FCX) recorded outstanding earnings for the Q4 ended December 31, 2024. With copper prices averaging $4.21 per pound, EBITDA increased 14% year over year to $10 billion. Increased production levels and higher realized prices resulted in a 35% increase in the company’s operational cash flows, which reached $7 billion. By redeeming $730 million in senior notes and maintaining net debt at about $1 billion, this expansion allowed the company to further solidify its financial position. Accordingly, $4.7 billion was paid through dividends and share repurchases.
Furthermore, Freeport-McMoRan Inc. (NYSE:FCX) is expanding its copper leach operations in parallel with its strategic development, which helped it achieve a noteworthy 50% increase in additional copper output in 2024. The company’s goal is to further optimize its manufacturing capacity by achieving a run rate of 300 million pounds by the end of 2025.
Freeport-McMoRan Inc. (NYSE:FCX) is prioritizing cost effectiveness by implementing innovative technology, such as autonomous haulage at its Bagdad mine, which is expected to be in service in 2025. However, there have been certain challenges in its operations in Indonesia, including a 7.5% export tax and delays in export permits. Looking ahead, copper, which could soon be regarded as a “critical mineral,” might be eligible for a 10% tax credit, which could lead to benefits of up to $500 million.
Thus, Freeport-McMoRan Inc. (NYSE:FCX) is one of the best metal stocks to watch because of its ongoing investments in efficiency, automation, and organic growth.
2. Nexa Resources S.A. (NYSE:NEXA)
Average Upside Potential: 29.15%
Number of Hedge Fund Holders: 4
Nexa Resources S.A. (NYSE:NEXA), one of the top producers of zinc, is a well-known global metals company. The company owns three zinc smelters and six polymetallic mines in Brazil and Peru. Nexa’s primary output is zinc, but it also produces copper, lead, silver, and other byproducts, all of which add to its diversified revenue streams.
Nexa Resources S.A. (NYSE:NEXA) announced impressive financial results for Q4 ended December 31, 2024, which were fueled by better cost efficiency and higher zinc prices. Net revenue increased by 18% to $741 million, while adjusted EBITDA rose 79% to $197 million. In 2024, full-year EBITDA was $714 million, reflecting a 76% increase over 2023. Sustained improvements in operational efficiency and increased output at the Aripuanã mine fueled this growth.
Although the company’s financial performance was positive, it faced several operational difficulties. Due to decreased output at major mines, zinc production fell by 19% year-over-year to 74,000 tons in Q4. Nevertheless, due to the steady demand for zinc, the company’s smelting sales increased by 6% to reach 152,000 tons. While Nexa’s full ramp-up has been postponed until 2026 due to tailings difficulties, Aripuanã’s remarkable 43% rise in full-year output was a silver lining. Nexa Resources S.A. (NYSE:NEXA) has made significant progress with its Cerro Pasco integration project, which aims to prolong the mine’s life and increase long-term output, in addition to these operational measures.
Looking ahead, Nexa Resources S.A. (NYSE:NEXA) anticipates significantly greater cash flow in 2025, supported by Aripuana’s ongoing cost-cutting initiatives and production ramp-up. These initiatives aim to reduce debt, extend the life of mines, and provide value to shareholders.
However, Nexa Resources S.A. (NYSE:NEXA) still has a few challenges to overcome. Its Magistral project is still undergoing government discussions and is at risk due to rising smelting prices and regulatory obstacles. The purchase of a fourth tailings filter has also been authorized by the company to boost filtering capacity and enable full production. This filter will be installed in 2025, and it will begin operating in the first quarter of 2026.
Despite these obstacles, Nexa Resources’ strategic initiatives, operational enhancements, and solid financial base into 2025 make it one of the best metal companies to consider investing in.
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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