We recently compiled a list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Carpenter Technology Corporation (NYSE:CRS) stands against the other nickel stocks.
Nickel is a metal that is used extensively in manufacturing. It is a key component of stainless steel and is valued for its corrosion resistance. It is also among the most abundant resources. According to the International Nickel Study Group, primary nickel production will rise by 4.6% globally in 2024 and then by an additional 3.8% in 2025. About 150,000 tonnes of nickel will be in excess globally in 2025, according to Nornickel, mostly in high-grade nickel segments.
The nickel industry is booming. As per Fortune Business Insights, the size of the global nickel market was estimated at $41.61 billion in 2023 and is projected to keep growing at a compound annual growth rate (CAGR) of 7.3%, from $44.59 billion in 2024 to $73.15 billion by 2032. In 2023, Asia Pacific held an 82.62% market share, dominating the nickel market. Furthermore, it is anticipated that the nickel market in the United States will expand to a size of $2.01 billion by 2032, led by the electric vehicle industry, continuous infrastructure projects, and strong demand from the production of stainless steel.
However, nickel stock investing might be challenging. Mining businesses are cyclical, and stock prices fluctuate in line with the market price of nickel. Fears of a recession and a decline in industrial demand have caused nickel prices to fluctuate in early 2025, dropping from around $17,000 per metric ton to less than $16,000 in March, according to S&P Global Commodity Insights. Since nickel is necessary for NCM and NCA batteries in electric vehicles, the long-term demand picture is still favorable. Through 2030, the demand for nickel from EV batteries is anticipated to increase by 15% to 20% globally (IRENA). Long-term supply agreements have been negotiated by two major automakers to guarantee access to battery-grade nickel.
That said, prices have been under pressure due to the expansion in supply, particularly from Indonesia, which produced over 1.6 million metric tons in 2024 and accounts for about 50% of the global supply. Despite high costs and environmental concerns, Indonesia’s export prohibition and the growth of HPAL projects are changing the supply chain landscape. Although environmental and legal barriers exist, the Philippines is also increasing its output. The market is further complicated by geopolitical concerns. Western sanctions are forcing Russian supplies to reroute to China, while the EU looks for alternatives in countries like Canada and Australia. Trump’s plans, which include possible tariffs on Chinese nickel, have placed an intense focus on essential resource extraction in the United States. LME 3M nickel prices are expected to average $16,026/t in 2025, according to S&P Global, with supply disruptions and changes in trade policy being the main concerns.
According to the latest report by S&P Global, in light of growing uncertainty from tariff-led global trade tensions, the Asian nickel market may continue to face pressure in the months ahead. This will be due to a supply surplus fueled by higher Indonesian production levels and weak demand from key nickel-consuming industries, such as electric vehicles and stainless steel. Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, stated:
“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government,”
“A slowdown in global economic activity would dent global primary nickel demand in a market already grappling with oversupply,” “further evolutions in the Trump administration’s trade tariff policies, we expect nickel prices to remain volatile in the near term.”
A close-up of an industrial robot welding titanium alloys in a metal fabrication facility.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 20 Nickel Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Carpenter Technology Corporation (NYSE:CRS)
Number of Hedge Fund Holders: 55
Carpenter Technology Corporation (NYSE:CRS) is a significant manufacturer and distributor of specialty metals, such as nickel alloys, titanium alloys, and superalloys. Two of the company’s reportable segments are Performance Engineered Products and Specialty Alloys Operations. The Specialty Alloys Operations segment accounts for the majority of its revenue. This comprises mill operations in Reading and Latrobe, Pennsylvania, and the neighboring areas, as well as South Carolina and Alabama. Geographically, the United States accounts for the majority of the company’s revenue, with the remainder coming from Europe, Asia Pacific, Mexico, Canada, and other areas. It is the Best Nickel Stock.
On January 30, Carpenter Technology Corporation (NYSE:CRS) released results for the second quarter of 2025 that were comparatively strong. EPS almost doubled to $1.66, and quarterly operating income jumped by a remarkable 70% year over year to $119 million. The business raised its FY 2025 net income projection from $460 million to $500 million, to a range of $500 million to $520 million, encouraged by the impressive achievements.
Andre Madrid, a BTIG analyst, maintained his Buy rating on Carpenter Technology Corporation (NYSE:CRS) shares and increased his price objective from $230 to $245. In a research note, the analyst informs investors that the company’s long-term outlook exceeded all expectations, with an estimated adjusted operating income of $765 million to $800 million in FY27, indicating a 25% compound annual growth rate. The firm views this growth trajectory favorably, particularly when it takes into account conservative OEM build rates that are lower than current OEM expectations.
Overall, CRS ranks 1st on our list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. While we acknowledge the potential of Nickel companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
