© Reuters. 3 Industrial Metal Stocks to Buy on the Dip
As the global economy continues to recover with declining COVID-19 cases, the demand for industrial metals should increase with industries returning to their pre-pandemic production levels. Therefore, we think it could be wise to bet on quality industrial metal stocks BHP (BHP), Rio Tinto (NYSE:), and Nexa Resources (NEXA). These stocks are currently trading below their 52-week price highs but are expected to generate significant ROI in the near term. Read on.The industrial metal industry has been attracting significant investor attention lately as COVID-19 cases continue to decline and industries gradually return to their pre-pandemic production levels. Investors’ interest in industrial metal stocks is evident in the Invesco DB Base Metals Fund’s (DBB) 10.9% returns over the past three months versus the SPDR S&P 500 ETF Trust’s (SPY) 4.4% gains.
Iron ore prices have plunged over the past few months as China reduced its steel production. However, the prospect of increased spending predicated on the Biden Administration’s proposed infrastructure bill is expected to drive the industrial metals industry’s growth. According to a Mining Global Market report, the global mining market is expected to reach $2,427.85 billion in 2025.
So, we think it could be wise to bet now on fundamentally sound industrial metal stocks BHP Group (NYSE:), Rio Tinto Group (RIO), and Nexa Resources S.A. (NEXA), which are trading below their 52-week highs now but have significant upside potential.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment