5 Best Steel Stocks to Buy Amid Upcoming Infrastructure, Construction Boom

4. Steel Dynamics, Inc. (NASDAQ: STLD)

Number of Hedge Fund Holders: 26

Steel Dynamics is an Indiana-based company that has been on a tear recently. The stock has gained 72% year to date. The company deals in categories like hot-rolled sheet steel, structural steel and merchant steel. Close to 48% of its products are related to construction. The company’s recycling operations are also at a very large scale.

In April, Bank of America’s Timna Tanners upgraded the stock to Buy and increased the price target to $61 from $49. The analyst said that the company has “well-positioned” balance sheets.

The company is also getting the attention of the smart money, as 26 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the first quarter, down from 27 funds a quarter earlier.