Best Iron Stocks

Iron is the rudimentary metal used to manufacture steel. Some of the largest iron mining companies in the U.S. also extract a variety of raw materials such as copper, nickel, zinc and aluminum. These companies have a well-connected network of refineries and distributors to sell the large amounts of the iron mined on the market. That's why it's important to know the best iron stocks for investments.

Are you looking to expose your portfolio to the metal industry? Consider investing in these iron stocks that can earn you more bang for your buck.      

Quick Look at the Best Iron Stocks:

• Commercial Metals Company
• BHP Group Limited
• Nucor
• Rio Tinto PL
• Cleaveland-Cliffs, Inc.

Highlighted Iron Stocks:

Overview: Iron Stocks

The uses of iron can be traced back to Egypt during 3500 B.C. The earliest known method to process iron was by smelting it from its ore. 

Depending on the carbon content in the ore, you can classify it as pig iron, wrought iron or cast iron. Roughly 90% of the metals refined today are of iron. It is mainly used in civil engineering, construction and manufacturing industries. 

Cleveland-Cliffs Inc. (NYSE: CLF) was founded in 1846 and is the oldest and largest iron ore mining company in the U.S. Iron mining companies produce more than 2.2 billion metric tons of usable iron ore. About 98% of the iron produced goes into making steel. That’s why the price of iron in the market is hugely driven by the global demand for steel. 

Low prices of iron have caused smaller iron ore extraction companies to stay afloat. As a result, investors are choosing to put their money in larger iron stocks such as Vale (NYSE: VALE), Rio Tinto and BHP. 

Best Online Brokers for Iron Stock

Trade penny stocks, stocks, mutual funds, exchange-traded funds and foreign exchange instantly with online brokers. You can easily manage your entire stock portfolio on these platforms. These online brokers also have professional tools that provide powerful insights that can help you plan your trading tactics.  

Here’s a rundown of the best online brokers on the market. 

Features to Look for in Iron Stock

1. Profitable earnings per share: The earnings per share (EPS) of a company can determine the return of your investments. You can calculate the EPS of a company by dividing its net income by its total number of outstanding shares. Iron stocks with a negative EPS are considered bad investments as it may indicate that the company is running under loss.  

1. Low price-earnings ratio: The price-earnings (P/E) ratio can help you assess the performance of iron stocks compared to other companies from the metal industry. Many iron stocks under $10 have the lowest P/E ratios. 

1. Global demand for steel: Since most of the steel is made from iron, global demand for steel can impact the stock price of iron mining companies. Be up to date on financial news related to steel consumption for lucrative opportunities to buy and sell iron stocks.    

Iron Stocks to Watch Out for This Year

Consider investing in these iron stocks that are making a buzz in the market in 2020. 

Commercial Metals Company

Headquartered in Irving, Texas, Commercial Metals Company is a low-cost, high-quality metals recycler, manufacturer and fabricator. It offers metal products such as cast iron, aluminum, copper, brass, nickel, tin and zinc. 

The metal stock has an EPS of $2.61 and a P/E ratio of 7.35. It has a market cap of $2.2 billion and has an average daily trade volume of 1.5 million shares. Commercial Metals Company has an annual dividend yield of 2.4%, making it one of the best iron stocks under $20. It generated total revenue of $5.8 billion in 2019. 

In March 2020, Commercial Metals Company declared a quarterly cash dividend of $0.12 per share to its shareholders. 

BHP Group Limited

BHP is a global leader in extracting minerals, oil and gas. Its assets focus on metals such as iron ore, copper, coal and nickel. It has mining projects in North America and Australia. 

The company stock has an EPS of $3.71 and a P/E ratio of 14.08. It has a market cap of $127 billion and trades more than 1 million shares per day. BHP has an annual dividend yield of 4.94%. It generated total revenue of $44 billion in 2019. 

Recently, BHP announced that it will spend up to $20 million over the next 5 years to establish the West End district of Port Hedland in Australia as a vibrant commercial and community hub. This project includes improving the overall aesthetics and amenities, public infrastructure like playgrounds, picnic tables, seating and installation of 2 shipping containers. 

Nucor

Nucor Corporation is a leading producer of steel in the U.S. Its products include structural steel, steel bars, steel joists, steel decks and cold-finished bars. The company also produces direct reduced iron that is used in its steel mills. It has 123 operating facilities in the U.S. and Canada. 

The metal stock has an EPS of $2.58 and a P/E ratio of 17.16. It has a market cap of $13 billion and an average daily trade volume of 1.9 million shares. Nucor has an annual dividend yield of 3.54%. It generated a total revenue of $22.5 billion in 2019.

In June 2020, Nucor declared a quarterly cash dividend of $0.4025 per share to its shareholders. It is the 189th consecutive cash dividend payout from Nucor.

Rio Tinto PLC

Founded on the banks of the river in Andalusia, Spain, Rio Tinto is a pioneer in mining and metals. Its metal products include iron ore for steel, aluminum for smartphones and cars, and copper for wind turbines, electric cars and water treatment systems. Rio Tinto operates 60 projects and serves 2,000 customers in 36 countries. 

The metal stock has an EPS of $4.88 and a P/E ratio of 11.84. It has a market cap of $96 billion and has an average daily trade volume of 2.9 million shares. Rio Tinto has an annual dividend yield of 6.55%. It generated total revenue of $43 billion in 2019.

In February 2020, Rio Tinto approved a $98 million investment for a new solar plant to power its iron ore mines in western Australia. 

Cleveland-Cliffs Inc. 

Cleveland-Cliffs is an iron ore and steel company. It has mining and steel manufacturing operations in the U.S., Canada and Mexico. 

The iron stock has an EPS of $0.95 and a P/E ratio of 7.19. It has a market cap of $2.7 billion and has high liquidity with over 13 million shares traded per day. Cleveland-Cliffs has an annual dividend yield of 3.70%. It generated a total revenue of $1.9 billion in 2019.

In May 2020, Cleveland-Cliffs announced that its wholly-owned subsidiary, AK Steels, will be increasing the price of all carbon flat-rolled steel products by a minimum of $40 per ton on new orders from North America.   

Biggest Iron Movers of the Day

Check out these iron stocks with the biggest price movements today.

You can also view these premarket movers to trade stocks before trading sessions open.

Strike When the Iron Stocks are Hot

Companies that mine iron ore distribute it to many regions including North America, Australia and Asia. Investing in iron stocks when construction and steel related-projects are on the rise can help you make the most of your investments. 

Frequently Asked Questions