3 Top Stock Picks In Metals, Mining Sector To Consider Right Now
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Bill Peterson recommends Cleveland-Cliffs Inc (CLF), Stelco Holdings (STZHF), and Constellium SE (CSTM) as top picks in the metals and mining sector. Peterson highlights CLF's aggressive buyback plans and benefits from idling its Weirton tinplate mill, STZHF's value-add products potentially yielding incremental EBITDA, and CSTM's strong aerospace demand and strategic initiatives boosting margins and EBITDA.
March 21, 2024 | 12:28 pm
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POSITIVE IMPACT
Cleveland-Cliffs Inc is recommended by JPMorgan for its aggressive buyback plans and the expected benefits from idling its Weirton tinplate mill.
The aggressive buyback plans and operational adjustments such as the idling of the Weirton tinplate mill are expected to enhance shareholder returns, making CLF an attractive option for investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Constellium SE is recommended by JPMorgan due to strong aerospace demand and strategic initiatives expected to boost margins and EBITDA.
Constellium's initiation of a capital returns program and strategic initiatives like the start-up of its recycle slab caster are expected to significantly boost its margins and EBITDA, making it an attractive investment.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Stelco Holdings is highlighted by JPMorgan for its potential incremental EBITDA from value-add products despite being a laggard in the steel market.
Stelco's focus on value-add products and near-term price support are expected to yield incremental EBITDA, making it an attractive stock for investors looking for growth in the steel sector.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80