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5 Best Steel Stocks to Buy for Q1 2025
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This page contains the top five stocks to invest in right now. Our team of financial analysts have conducted extensive due diligence and determined that these are your best options for investing in steel shares. In addition, we explain what steel stocks are and whether or not they are a good investment. Read on to get started.
What are the top steel stocks to buy?
Copy link to sectionThe table below contains the five best publicly listed steel companies in the world. There is a good blend of seasoned veterans of the industry along with up-and-coming growth propositions, and you can find out about the company’s latest share price information by clicking the relevant link in the table.
| # | Stock symbol | Company name | Learn more |
|---|---|---|---|
| 1 | STLD | Steel Dynamics, Inc. | Learn more > |
| 2 | ZEUS | Olympic Steel, Inc. | Learn more > |
| 3 | EQTATASTEEL | Tata Steel Ltd. | Learn more > |
| 4 | CLF | Cleveland-Cliffs Inc. | Learn more > |
| 5 | X | US Steel | Learn more > |
1. Steel Dynamics, Inc. (NASDAQ: STLD)
Copy link to section- Market Cap: $18.9 billion
- 2023 Revenue: $18.7 billion
- Forward Revenue Growth: -6.5%
- Dividend yield: 1.5%
- P/E Ratio: 10.35
- Stock Price: $120
Founded in 1993 and headquartered in Fort Wayne, Indiana, this is an American steel producer and metal recycler. The company operates through three different divisions: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. Nearly half of STLD’s products are used in the construction trade.
Held by numerous hedge funds, Steel Dynamics stock has performed well in recent times, surging in value and providing a greater than 1.50% dividend yield to sweeten the deal for shareholders. With well over $18 billion in annual revenue and 9,000 employees, the company appears primed for even more growth as the North American economy kicks into top gear post-COVID.
The company is on this list because of how well it has performed in recent years. If Steel Dynamics can continue to drive its revenue up, further share price accretion could well follow, along with dividend growth. It also has one of the best balance sheets in the industry with about $2 billion in cash against long-term debt of $2.6 billion. It also has higher margins than other steel companies. Its net profit margin of 13% is higher than the sector median of 4.
2. Olympic Steel, Inc. (ZEUS)
Copy link to section- Market Cap: $512 million
- 2023 Revenue: $2.1 billion
- Forward Revenue Growth: -6.5%
- Dividend yield: 1.3%
- P/E Ratio: 18
- Stock Price: $46
In the Olympics of steel, Olympic Steel would be a top contender for the gold medal. Incorporated in 1954 and based in Bedford Heights, Ohio, ZEUS processes and distributes metal products in the United States and around the world. Like STLD, the company operates in three distinct segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products.
The company’s share price surged from $10 in 2020 and peaked at $71 in 2023. 2024 was a relatively difficult year as it stock dropped to $48 after missing its guidance.
While its dividend yield is significantly less than Steel Dynamics at around 1.3%, the company’s share price and revenue growth – up to around $2.1 billion per year – makes it a great option for bullish steel investors. Its valuation multiples have come down recently, meaning that it could attract bulls in the future.
3. Tata Steel Ltd. (NSE: EQTATASTEEL)
Copy link to section- Market Cap: $27 billion
- 2023 Revenue: $27 billion
- Forward Revenue Growth: 7.08%
- Dividend yield: 4.7%
- P/E Ratio: 10
- Stock Price: $9.2
Founded in 1907 and headquartered in Mumbai, India, Tata Steel is one of the world’s largest and most diversified steel companies, operating in 26 countries and owning commercial offices in over 35 nations. The company manufactures and distributes steel products in India and around the globe.
In recent years, Tata Steel has been just about the top-performing steel stock by share price, surging in value by hundreds of per cent and delivering a reasonable 4.7% dividend yield to shareholders. This growth happened because of the strength of the Indian economy under Narendra Modi and its actions to cut costs. For example, Tata Steel closed its loss making blast furnace plant in the UK in a bid to lower its expenses.
These days, Tata Steel generates over $72 billion in revenue every single year, and with an annual crude steel capacity of 34 million tonnes per annum, it is the company’s sheer scale that has landed it a spot on this list. It also benefits from being based in a jurisdiction with a blossoming economy, which should aid future growth.
The challenge is that most Americans, especially retail investors, don’t have access to the stock because it is listed in Mumbai. There are also no ADRs to take advantage of the stock.
4. Cleveland-Cliffs Inc. (NYSE: CLF)
Copy link to section- Market Cap: $7.09 billion
- 2023 Revenue: $21.9 billion
- Forward Revenue Growth: -2.95%
- Dividend yield: 4.7%
- P/E Ratio: 23
- Stock Price: $14.9
Despite being designated as a meme stock in 2021 as retail investors discovered that some hedge funds had large short positions held against it, CLF is actually one of the best steel stocks you can get your hands on.
Founded by Samuel Mather in 1847 in Cleveland, Ohio, the company was formerly known as Cliffs Natural Resources, and it specialises in the mining, beneficiation, and pelletising of iron ore. In addition, and relevant to this list, it has a large steelmaking division that includes stamping and tooling.
Right now, CLF is the largest flat-rolled steel producer in all of North America, generating over $21 billion in annual revenue. As a result, the company’s share price has performed extremely well in the last few years. It is certainly an option to consider for keen steel investors and is well-deserving of a spot on our list.
Cleveland-Cliffs has been growing through acquisitions. In 2023, it emerged as a bidder for US Steel, another leading steel company before its offer was toppled by Nippon Steel. It has also acquired AK Steel and FPT.
5. US Steel Corporation (X)
Copy link to section- Market Cap: $8.2 billion
- 2023 Revenue: $18 billion
- Forward Revenue Growth: -6.4%
- Dividend yield: 0.5%
- P/E Ratio: 12
- Stock Price: $36
United Steel Corporation is one of the leading steel companies in the US with over $18 billion in market cap.
Its stock has soared by over 164% in the past five years, helped by the strong infrastructure spending in the US. This explains why the company has become an acquisition target by Cleveland Cliffs and Nippon Steel.
The challenge for this acquisition is that it has become a geopolitical issue as the US considers blocking it. The US argues that it will be disastrous for one of its biggest steel companies to be owned by a foreigner.
Still, there are odds that the acquisition will go on because the US and Japan are allies, a move that will supercharge its stock.
Where to buy the best steel shares
Copy link to sectionTo purchase shares in steel companies, you need to sign up to an online stock broker. Click one of the links below to sign up to one of our recommended options.
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What is a steel stock?
Copy link to sectionA steel stock represents a portion of ownership in a publicly listed steel company. Anyone can purchase steel stocks, from regular retail investors to established institutional banks.
Investing in a steel stock gives you exposure to the price performance of that particular steel company as well as the broader industrial and construction market that steel is a key part of. Steel is also a key part of the international automotive industry, and given its numerous uses, it is the world’s second-most popular commodity after crude oil.
Steel is also a classic example of a cyclical stock since its performance will correlate with broader economic conditions. Essentially, In a bear market, steel demand will fall because of reduced expenditure on construction and other key steel growth drivers by national governments and private enterprises. However, in an economic boom, things will ramp up.
Are steel shares a good investment?
Copy link to sectionSteel is often a good investment during the early phases of growth during an economic bull cycle. If you can make an early entry, as steel demand ramps up, you could be in for substantial rewards. However, if economic conditions head in the opposite direction, the steel market will likely follow.
Global steel demand currently stands at over 1,850Mt, and this figure will continue to grow, especially as developing economies ramp up their expenditure. As a result, the steel macro story is one of the most robust narratives in the entire commodity trade – the permanence of its usefulness and the economic strength of the steel ecosystem is without question.
As the impact of the COVID-19 pandemic continues to dwindle, many analysts expect steel to perform well in the coming years as economies around the world are stimulated with additional spending. If you can pick a winning stock, steel could be a strong investment moving forward.
Methodology: How we choose the best steel stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.