3 Top Stock Picks In Metals, Mining Sector To Consider Right Now

Zinger Key Points
  • JPMorgan picks Cliffs, Stelco, Constellium for their buybacks, price support, and growth potential in metals & mining.
  • Cliffs idling Weirton mill, Stelco's value-add focus, and Constellium's aerospace demand make them standout choices.

JPMorgan is currently Overweight on several metals and mining stocks.

As the metals and mining sector gears up for potential growth, JPMorgan analyst Bill Peterson highlights three “top stock picks.” Stocks that Peterson says investors should have on their radar include Cleveland-Cliffs Inc CLF, Stelco Holdings STZHF, and Constellium SE CSTM.

Cleveland-Cliffs Should Deliver Enhanced Shareholder Returns

Peterson is bullish on Cliffs, particularly with its aggressive buyback plans and a projected $150 million a year benefit starting in the second quarter.

With the imminent full idling of its Weirton tinplate mill in April, Cliffs is poised for enhanced shareholder returns. This comes amid easing met coal contract pricing.

Also Read: Cleveland-Cliffs, Sprouts Farmers Market And 2 Other Stocks Insiders Are Selling

Stelco – Value Added Products To Yield Incremental EBITDA

Despite being a laggard in the steel coverage market (-17% YTD), Stelco presents positive catalysts. These include near-term price support and a clear value-creation strategy.

Peterson sees these factors driving a renewed focus on shareholder returns. He puts the spotlight on value-add products that could potentially yield an incremental C$100M EBITDA over time.

Constellium – Strong Aerospace Demand To Buoy A&T Margins

Constellium is also on Peterson’s radar, having initiated its first capital returns program. Strong aerospace demand is anticipated to buoy A&T margins well above normalized levels into 2025.

Furthermore, strategic initiatives like the planned start-up of its recycle slab caster in Europe in 4Q24, could add €40M/year in incremental EBITDA. This should serve to further enhance its appeal to investors.

With promising developments across the metals and mining sector, investors may find these three stocks attractive options to consider. Peterson’s insights highlight the potential for significant shareholder returns and strategic initiatives that could drive long-term growth in this sector.

Read Next: Constellium Announces A Three-Year Share Repurchase Program Of Up To $300M Expiring In December 2026

Image: Shutterstock

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