15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

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13. POSCO Holdings Inc. (NYSE:PKX)

Market Capitalization as of April 28: $13.57 billion

Number of Hedge Fund Holders: 19

POSCO Holdings Inc. (NYSE:PKX) operates as an integrated steel producer in Korea and internationally. It operates through six segments: Steel, Trading, Construction, Logistics & Others, Green Materials & Energy, and Others. The company plans, designs, and constructs industrial plants, civil engineering projects, and commercial & residential buildings.

POSCO’s crude steel output in Q1 2025 dropped by 5.5% sequentially due to the impact of overall maintenance works. However, selling prices slightly increased, and raw materials costs remain stable. The company also made several cost-saving efforts enterprise-wide. These factors together caused the operating profit margin to rise by 3.9%.

Therefore, management also anticipates that sales will potentially recover in Q2, as the reduced volumes cannot be attributed to decreased demand. Furthermore, POSCO Holdings Inc. (NYSE:PKX) is expanding its upstream steel production presence in key global regions, which include the US and India, to address evolving trade environments and enhance its automotive steel sheet market position.

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