Best Nickel Stocks to Invest in

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Contributor, Benzinga
July 10, 2023

Nickel is an important metal that has numerous applications in industries such as electric vehicles (EVs), batteries and the production of green hydrogen. As the demand for nickel continues to increase, investing in nickel stocks has become more popular.

This article lists of some of the best nickel stocks in, taking into consideration their recent performance, growth prospects and exposure to the global nickel market.

5 Best Nickel Stocks Right Now

Read here to learn more about the best nickel stocks right now.

1. Glencore (OTCMKTS: GLNCY) 

Glencore is a leading producer of nickel, as well as a recycler of nickel-containing materials such as batteries. The company claims to produce some of the world's purest nickel. 

Glencore is well-positioned to benefit from the growth of the EV and other nickel-related markets. The company has a long history of operating in the mining industry and pays a healthy dividend. 

Glencore's nickel operations are based in Canada, Australia, Norway and New Caledonia, providing it with some protection against potential political instability.

2. BHP Group (NYSE: BHP) 

The Melbourne, Australia-based BHP group has a significant nickel extraction and refining operation, meaning it is well-positioned in the nickel sector. 

All of BHP's nickel operations, including its open-cut and underground mines, concentrators, smelter and refinery, are located in Western Australia. The company claims that its Nickel West site is the “world's leading nickel supplier to the battery metals market.”

They also state it has a global advantage in the sustainable production of nickel.

3.  Vale (NYSE: VALE) 

Vale is a Brazilian metals and mining company listed on the New York Stock Exchange. It is the world’s second-largest producer of nickel and is a stock to consider if you believe the price of nickel will rise.

The company has a high dividend yield, making it a favorite of dividend investors. Seven Wall Street analysts have a bullish rating on the stock, while five are neutral and two see it as a sell.

4. Anglo American (OTCMKTS: NGLOY)

Anglo American has mine assets in Brazil. Barro Alto and Codemin, in the state of Goiás, are its two ferronickel production sites. The London, U.K.-headquartered company produced around 39,800 metric tons of nickel in 2022, slightly lower than the 41,700 produced in 2021. 

It is a key player in the nickel industry and one to consider for any investor looking at nickel stocks. Both Bernstein and Goldman Sachs currently have Buy ratings on the stock. Its shares, which are primarily listed in London, have disappointed so far in 2023, but it is still one to watch in the sector. 

5. SPDR S&P Metals & Mining ETF (NYSEARCA: XME)

If you want broader exposure to the nickel market alongside other metal production stocks, then an exchange-traded fund (ETF) may be the best option for your portfolio. The ETF holds 33 stocks, with its top five including companies such as Commercial Metals Company, Nucor Corp, ATI Inc., United States Steel and Reliance Steel & Aluminum Co. As of May 31, its total net assets were $1.6 billion, while its net expense ratio is 0.35%. 

With a significant portion of XME's portfolio made of steel stocks, it provides strong exposure to nickel, a key ingredient in steel.

What is a Nickel Stock?

A nickel stock is a type of stock issued by a company that deals with mining, refining or processing nickel. Nickel is a transition metal used in various industries, such as the EV market, the battery sector and stainless steel production, which is the largest nickel user. 

Various nickel stocks are available for investors to look into. However, not all provide the same attributes, so it is vital to conduct your own research. 

Why Invest in Nickel Stocks?

You can find various reasons to invest in nickel stocks, not least to gain exposure to the rapidly expanding EV market, in which nickel is a key component in. 

With the demand for nickel expected to grow in the coming years from the increasing use of it in batteries, stainless steel and other applications that are set to expand, investing in nickel stocks could be a way to gain exposure to potentially higher prices for nickel.

Where to Invest in Nickel Stocks

To invest in the stock market and buy shares of individual companies, you will need an account with a brokerage. While finding the right brokerage can be a challenging task, below is a list of some of the top brokers you can look into. 

Gain Exposure to Rising Demand

Demand for nickel is expected to grow in the coming years from the increasing use of metal in various industries. The growth could lead to higher prices for nickel, benefitting nickel-related stocks and investors in the metal. However, investors should remember that the price of nickel is volatile, so it's important to conduct significant research before investing in the sector and invest money that you can afford to lose.  

Frequently Asked Questions

Q

What are the best nickel stocks to buy?

A

Deciding the best nickel stocks to buy will depend on the time period and the investor’s time horizon and investing characteristics. However, some of the top nickel stocks include Glencore and BHP Group.

Q

Is nickel a good stock investment?

A

Markets move in cycles, and whether it is a good or bad time to invest in nickel stocks will depend on various macroeconomic and geopolitical factors. Investing in nickel stocks means you believe the industry looks positive and will benefit the companies involved in it.

Q

Who is the largest producer of nickel companies?

A

Some of the largest nickel mining companies include Anglo American, BHP Group, Glencore and Vale.

Best Nickel Stocks Methodology

The list of best nickel stocks comprises some of the most well-known names within the sector, as well as stocks that have a solid reputation and strong track record within the mining industry. 

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.