The demand for metals has been climbing on increasing construction and industrial activities with the reopening of economies around the globe. As such, we think it could be wise to scoop up the shares of metal-related companies Southern Copper (NYSE:SCCO), Sandvik (SDVKY), and Usinas (USNZY (OTC:USNZY)). All three have recently been upgraded by our proprietary POWR Ratings to ‘Strong Buy'. As major economies worldwide reopen, the demand for metals such as steel, iron ore and copper has also been growing thanks to reviving industrial, construction, and other activities that require metals as raw materials. Investors’ increasing interest in the metal space is evident in Invesco DB Base Metals Fund’s (DBB) 20.3% returns year-to-date compared to SPDR S&P 500 Trust ETF’s (SPY) 13.7% gains.
With rising demand for metals amid continuing supply issues, metals’ prices are expected to continue rising in the near term. In fact, the price surge for steel is expected to continue into next year, according to UBS Group AG (SIX:UBSG) (UBS). Consequently, metals companies are well positioned to benefit.
So, we think it would be wise to invest in metal stocks Southern Copper Corporation (SCCO), Sandvik AB (SDVKY), and Usinas Siderúrgicas de Minas Gerais S.A. (USNZY). They have recently been upgraded to ‘Strong Buy’ in our proprietary POWR Ratings system.