In this article, we will discuss 7 Best Steel and Metal Stocks to Buy for Energy Infrastructure.

The next trillion-dollar energy boom may not be built by oil producers, solar developers, or AI companies; it may be forged by steel mills and metal manufacturers.

As the world races to modernize power grids, expand LNG export facilities, build renewable-energy projects, and construct the infrastructure needed to support artificial intelligence and electrification, demand for steel and industrial metals is rising to levels that have captured the attention of some of Wall Street’s most influential investors. While technology stocks often dominate headlines, billionaire investors and hedge fund managers increasingly view steel and metal companies as critical beneficiaries of the global energy transition.

Legendary investor Warren Buffett has long favored businesses tied to real economic activity and infrastructure, while hedge fund billionaire Stanley Druckenmiller has repeatedly argued that commodity and industrial cycles can generate some of the market’s biggest winners when supply struggles to keep pace with demand. Similarly, Ray Dalio has warned that years of underinvestment in critical industrial capacity could collide with growing infrastructure needs, creating powerful opportunities in real-asset sectors.

The numbers are difficult to ignore. According to the International Energy Agency, global electricity demand is expected to grow at one of the fastest rates in decades, requiring massive investments in transmission lines, substations, pipelines, LNG terminals, wind farms, and data centers; all of which depend heavily on steel and industrial metals. Industry forecasts also project that global steel demand will remain supported by energy infrastructure spending, grid modernization, and industrial reshoring initiatives.

For investors seeking exposure to the physical backbone of the global economy, steel and metal stocks are increasingly emerging as leveraged plays on one of the most important infrastructure buildouts in modern history.

With this context in mind, here are some of the best steel and metal stocks to buy for energy infrastructure.

Our Methodology

We used stock screeners to identify a list of steel and metal stocks that have positive upside potential. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

7 Best Steel and Metal Stocks to Buy for Energy Infrastructure

7. Ternium S.A. (NYSE:TX)

Upside Potential: 0.27%

Ternium S.A. (NYSE:TX) received a significant boost in analyst sentiment on May 24 when Itau BBA upgraded the stock to Outperform from Market Perform and assigned a $59 price target. The upgrade reflects growing confidence in the company’s positioning within the steel industry and its ability to capitalize on improving market conditions across key regions.

Earlier, on May 22, Goldman Sachs raised its price target on Ternium S.A. (NYSE:TX) to $57 from $49 while maintaining a Buy rating. According to the firm, Ternium represents an attractive opportunity for investors seeking exposure to the North American steel market. The revised target underscores expectations for favorable demand trends and the company’s ability to benefit from its integrated operating model. The consecutive analyst upgrades from major financial institutions suggest that market participants are becoming increasingly constructive on Ternium’s outlook.

Ternium S.A. (NYSE:TX) is a leading multinational steel producer headquartered in Luxembourg City, Luxembourg, with roots dating back to 1961. The company operates a vertically integrated business that spans iron ore mining through the production of finished and semi-finished steel products.

6. Materion Corporation (NYSE:MTRN)

Upside Potential: 0.43%

Materion Corporation (NYSE:MTRN) continued to attract positive analyst attention after KeyBanc analyst Samuel McKinney raised his price target on the stock to $237 from $223 on June 2 while maintaining an Overweight rating. The analyst pointed to the company’s strong performance within its Electronic Materials segment, which generated a first-quarter gross margin exceeding 43%. Management attributed the margin expansion to a more favorable product mix as well as operational improvements and cost-reduction initiatives implemented during periods of lower demand. Following discussions at a recent conference, KeyBanc expressed increased confidence that Electronic Materials’ margins could remain above 40% through fiscal 2026.

Earlier, on May 7, Materion Corporation (NYSE:MTRN) announced that its Board of Directors approved a second-quarter 2026 dividend of $0.145 per share, representing an increase of $0.005 per share from the previous level. The increase marked the company’s 14th consecutive year of dividend growth, highlighting management’s commitment to returning capital to shareholders while maintaining financial discipline. Consistent dividend increases also underscore the stability of Materion’s business model and its ability to generate cash flow across different economic cycles.

Materion Corporation (NYSE:MTRN) is a global advanced materials company headquartered in Mayfield Heights, Ohio, and was founded in 1931. The company develops and manufactures highly engineered materials, including specialty metals, advanced alloys, precision optics, and thin-film coatings, which are critical to a wide range of high-growth industries, including semiconductors, aerospace, defense, telecommunications, and electric vehicles.

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