In this article, we discuss 5 precious metal stocks to buy according to Ken Fisher. If you want to check more precious metals stocks in Fisher’s portfolio, click 10 Precious Metals Stocks to Buy According to Ken Fisher.
5. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 26
Nucor Corporation (NYSE:NUE) is a North Carolina-based provider of steel and steel products. In addition to its primary steel business, the company’s Raw Materials segment produces ferrous and nonferrous metals such as pig iron.
The securities filings for Q4 2021 reveal that Ken Fisher owned 255,774 shares of Nucor Corporation (NYSE:NUE), valued at $29.1 million. The billionaire increased his stake by 3% in Q4.
Goldman Sachs analyst Emily Chieng raised the price target on Nucor Corporation (NYSE:NUE) on February 15 to $120 from $114 and kept a Neutral rating on the shares as part of a broader research note on metals & mining. The analyst updated her model based on refreshed commodity price assumptions.
On February 22, Nucor Corporation (NYSE:NUE) declared a quarterly dividend of $0.50 per share, in line with previous. The dividend is payable on May 11, to shareholders of record on March 31.
The Q4 database of Insider Monkey suggests that 26 hedge funds were long Nucor Corporation (NYSE:NUE), up from 25 funds in the earlier quarter. AQR Capital Management is a leading shareholder of the company, with a position worth $53 million.
Here is what Madison Funds has to say about Nucor Corporation (NYSE:NUE) in their Q1 2021 investor letter:
“This quarter we are highlighting Nucor (NUE) as a relative yield example within the Materials sector. NUE is a leading manufacturer of steel and steel products. It is the largest steelmaker in the U.S. based on production volume with a vertically integrated business model. The company has a low fixed-cost position due to its use of electric arc furnaces, which are cleaner, less labor and energy-intensive than blast furnaces, and this results in low total costs per unit of steel produced. Our view is that a low cost position is an important attribute in a commodity business. NUE’s historical financial record supports this view as it has been profitable every year except for one over the past fifty years, unlike many steel producing peers. In addition, the company has a diverse product and mill portfolio that takes market share over time. We believe its scale, low fixed-cost position, consistent record of profitability and diverse mill portfolio result in a sustainable competitive advantage versus peers.
Our thesis on NUE is that it should benefit from higher steel prices as the U.S. economy recovers from the downturn caused by the Covid-19 pandemic. The company may also be a beneficiary of on-shoring, where manufacturing returns to the United States. These two dynamics should drive growth this year, and if the United States Congress passes new infrastructure legislation, that will provide another avenue for growth longer-term. (Click here to read full text)
4. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Hedge Fund Holders: 29
Headquartered in Fort Wayne, Indiana, Steel Dynamics, Inc. (NASDAQ:STLD) operates as a steel producer and metal recycler in the United States. The Metals Recycling Operations segment processes metals into reusable forms and grades, and offers nonferrous products including aluminum, brass, copper, and stainless steel.
In the fourth quarter of 2021, Ken Fisher elevated his stake in Steel Dynamics, Inc. (NASDAQ:STLD) by 189%. Securities filings for Q4 reveal that his fund owned 188,534 shares of the company, worth $11.70 million.
Emily Chieng from Goldman Sachs kept a Buy rating on Steel Dynamics, Inc. (NASDAQ:STLD) and lifted the price target to $80 from $75 as part of a broader research note. The analyst upgraded her model to account for commodity price and cost assumptions amid the macro backdrop.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were long Steel Dynamics, Inc. (NASDAQ:STLD), up from 23 funds in the prior quarter. D E Shaw is the leading shareholder of the company, with 1.2 million shares worth $75.5 million.
3. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 36
Cleveland-Cliffs Inc. (NYSE:CLF) is headquartered in Cleveland, Ohio, operating as a flat-rolled steel producer in North America. The company also provides hot-briquetted iron products. On March 21, Cleveland-Cliffs Inc. (NYSE:CLF) announced that it will redeem its remaining $607 million of outstanding 9.875% senior secured notes due October 2025 on April 20, 2022.
According to the securities filings for Q4 2021, Ken Fisher’s fund owns 12.5 million Cleveland-Cliffs Inc. (NYSE:CLF) shares, worth $272.2 million, representing 0.15% of the total 13F portfolio.
On March 15, Citi analyst Alexander Hacking raised the price target on Cleveland-Cliffs Inc. (NYSE:CLF) to $28 from $25 and kept a Neutral rating on the shares. According to the analyst, the U.S. is in the “middle of massive steel inflation” spreading out of Europe and potential deflation originating from China. He also raised his 2022 U.S. price deck for steel.
A total of 36 hedge funds were bullish on Cleveland-Cliffs Inc. (NYSE:CLF), compared to 35 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the largest shareholder of the company, with 7.5 million shares worth $163.5 million.
2. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 41
Alcoa Corporation (NYSE:AA) is a Pennsylvania-based company that produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, and Canada. Ken Fisher’s fund owns 6.3 million Alcoa Corporation (NYSE:AA) shares, worth $378.5 million, representing 0.21% of the total 13F securities.
Argus analyst David Coleman raised the price target on Alcoa Corporation (NYSE:AA) to $95 from $68 and kept a Buy rating on the shares on March 21. The analyst noted that Alcoa Corporation (NYSE:AA) has a strong track record in its industry given its improving balance sheet, soaring aluminum prices, and the latest developments in the Chinese and Russian markets. He also told investors that Alcoa Corporation (NYSE:AA) recently initiated a dividend and a $500 million share buyback program. He elevated his FY22 EPS view by $2.00 to $9.30 and his FY23 estimate by 95c to $8.
On February 24, Alcoa Corporation (NYSE:AA) declared a quarterly dividend of $0.10 per share. The dividend is payable on March 24, to shareholders of record on March 8.
According to the fourth quarter database of Insider Monkey, 41 hedge funds were bullish on Alcoa Corporation (NYSE:AA), compared to 44 funds in the last quarter. Theleme Partners is a significant shareholder of Alcoa Corporation (NYSE:AA), with 4.90 million shares worth $292.4 million.
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 66
Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based company that mines mineral properties in North America, South America, and Indonesia, exploring primarily for copper, gold, molybdenum, silver, and other metals. The stock gained 17.37% over the last month, as demand for precious metals rose amid the Ukraine crisis.
On March 17, Stifel analyst Alex Terentiew raised the price target on Freeport-McMoRan Inc. (NYSE:FCX) to $54 from $49 and kept a Buy rating on the shares.
Ken Fisher increased his stake in Freeport-McMoRan Inc. (NYSE:FCX) by 4% in the fourth quarter of 2021, holding almost 49 million shares worth more than $2 billion. The stock accounts for 1.14% of the fund’s total 13F securities.
At the end of the fourth quarter of 2021, 66 hedge funds reported owning stakes in Freeport-McMoRan Inc. (NYSE:FCX), collectively worth $3.7 billion. Ric Dillon’s Diamond Hill Capital is a prominent shareholder of the company, with 13.8 million shares worth close to $577 million.
You can also take a look at 10 Dividend Stocks With Over 5% Yield and 10 Semiconductor Stocks to Buy Under $50.
