The post Best Iron Stocks by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.
Iron is the rudimentary metal used to manufacture steel. Some of the largest iron mining companies in the U.S. also extract a variety of raw materials such as copper, nickel, zinc and aluminum. These companies have a well-connected network of refineries and distributors to sell the large amounts of the iron mined on the market. That’s why it’s important to know the best iron stocks for investments.
Are you looking to expose your portfolio to the metal industry? Consider investing in these iron stocks that can earn you more bang for your buck.
Quick Look at the Best Iron Stocks:
- Commercial Metals Company
- BHP Group Limited
- Nucor
- Rio Tinto PL
- Cleaveland-Cliffs, Inc.
Contents
- Quick Look at the Best Iron Stocks:
- Highlighted Iron Stocks:
- Overview: Iron Stocks
- Best Online Brokers for Iron Stock
- Features to Look for in Iron Stock
- Iron Stocks to Watch Out for This Year
- Commercial Metals Company
- BHP Group Limited
- Nucor
- Rio Tinto PLC
- Cleveland-Cliffs Inc.
- Commercial Metals Company
- Biggest Iron Movers of the Day
- Strike When the Iron Stocks are Hot
- Frequently Asked Questions
Highlighted Iron Stocks:
| Symbol | Company | % Change | Price | Dividend Yield | Invest |
|---|---|---|---|---|---|
| CMC | Commercial Metals |
– 0.05%
|
$44.32 | 0.64 / 1.44% | Buy stock |
| BHP | BHP Group |
+ 0%
|
$57.58 | 5.3 / 9.2% | Buy stock |
| NUE | Nucor |
+ 0%
|
$145.42 | 2.04 / 1.4% | Buy stock |
| RIO | Rio Tinto |
– 0.05%
|
$64.70 | 4.92 / 7.6% | Buy stock |
| PKX | POSCO Holdings |
+ 0.02%
|
$62.04 | 2.6487 / 4.27% | Buy stock |
Overview: Iron Stocks
The uses of iron can be traced back to Egypt during 3500 B.C. The earliest known method to process iron was by smelting it from its ore.
Depending on the carbon content in the ore, you can classify it as pig iron, wrought iron or cast iron. Roughly 90% of the metals refined today are of iron. It is mainly used in civil engineering, construction and manufacturing industries.
Cleveland-Cliffs Inc. (NYSE: CLF) was founded in 1846 and is the oldest and largest iron ore mining company in the U.S. Iron mining companies produce more than 2.2 billion metric tons of usable iron ore. About 98% of the iron produced goes into making steel. That’s why the price of iron in the market is hugely driven by the global demand for steel.
Low prices of iron have caused smaller iron ore extraction companies to stay afloat. As a result, investors are choosing to put their money in larger iron stocks such as Vale (NYSE: VALE), Rio Tinto and BHP.
Best Online Brokers for Iron Stock
Trade penny stocks, stocks, mutual funds, exchange-traded funds and foreign exchange instantly with online brokers. You can easily manage your entire stock portfolio on these platforms. These online brokers also have professional tools that provide powerful insights that can help you plan your trading tactics.
Here’s a rundown of the best online brokers on the market.
Claim Exclusive Offers
get started
securely through Interactive Broker’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Get 10 Free Shares
securely through Magnifi’s
website
Magnifi is an intelligently designed marketplace that allows investors to access data-backed information about various investment opportunities. The company combines standard brokerage tools with artificial intelligence (AI) to promote financial competence. Magnifi distinguishes itself from the crowd by offering an AI-powered search feature and an AI-powered investment assistant. Magnifi offers a technology-forward platform that aims to promote confident and capable long-term financial investments.
Best For
- Long-term investors
- Individuals interested in personalized assistance
- New investors that are eager to learn how to start investing
- Access to an AI-powered investing assistant with a Magnifi Personal account
- Commission-free investing
- Over 15,000 possible investments
- Available mobile application
- Limited methods of communication with customer service
get started
securely through eTrade’s
website
Boasting one of the best mobile brokerage platforms on the market and a competitive fee structure, Power E*TRADE is a popular platform for options and futures trading, especially among high frequency traders. It boasts intuitive tools and beginner-friendly options for active traders and investors.
Best For
- High frequency traders who execute more than 30 options trades per quarter
- Investors who want to be able to trade via their phone or tablet
- Among the most advanced mobile apps, complete with a customizable dashboard
- Lower fees and margin rates for frequent traders
- Prebuilt portfolios, preset scans and automation tools that are great for passive investors and new investors.
- Fees are higher for less frequent traders
- Forex and international markets are not available
get started
securely through CenterPoint Securities’s
website
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
Best For
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
get started
securely through Webull’s
website
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
get started
securely through TD Ameritrade’s
website
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
get started
securely through Robinhood’s
website
Robinhood is a broker designed for traders who want a simple and easy-to-use platform. It takes out all the bells and whistles that can be confusing to the modern day trader, serving as the perfect place for beginners to learn the markets. The interface is intuitive and easy to master, streamlined to ensure you don’t get distracted as you build a portfolio. Though advanced traders might like more thorough analysis tools, Robinhood gives you everything you need to start trading and learn the ropes.
Best For
- Beginner traders
- Mobile traders
- Streamlined, easy-to-understand interface
- Mobile app with full capabilities
- Can buy and sell cryptocurrency
- Fewer analysis tools than most
Features to Look for in Iron Stock
- Profitable earnings per share: The earnings per share (EPS) of a company can determine the return of your investments. You can calculate the EPS of a company by dividing its net income by its total number of outstanding shares. Iron stocks with a negative EPS are considered bad investments as it may indicate that the company is running under loss.
- Low price-earnings ratio: The price-earnings (P/E) ratio can help you assess the performance of iron stocks compared to other companies from the metal industry. Many iron stocks under $10 have the lowest P/E ratios.
- Global demand for steel: Since most of the steel is made from iron, global demand for steel can impact the stock price of iron mining companies. Be up to date on financial news related to steel consumption for lucrative opportunities to buy and sell iron stocks.
Iron Stocks to Watch Out for This Year
Consider investing in these iron stocks that are making a buzz in the market in 2020.
Commercial Metals Company
Headquartered in Irving, Texas, Commercial Metals Company is a low-cost, high-quality metals recycler, manufacturer and fabricator. It offers metal products such as cast iron, aluminum, copper, brass, nickel, tin and zinc.
The metal stock has an EPS of $2.61 and a P/E ratio of 7.35. It has a market cap of $2.2 billion and has an average daily trade volume of 1.5 million shares. Commercial Metals Company has an annual dividend yield of 2.4%, making it one of the best iron stocks under $20. It generated total revenue of $5.8 billion in 2019.
In March 2020, Commercial Metals Company declared a quarterly cash dividend of $0.12 per share to its shareholders.
Source – NASDAQ
BHP Group Limited
BHP Group (NYSE:BHP)
57.580
0
[0%]
Sell
Trade Now
–
46.925 – 71.52
2.53B
0.00K/2.86M
145.71B
2.53B
5.3/9.2%
90.400
0.00K
BHP is a global leader in extracting minerals, oil and gas. Its assets focus on metals such as iron ore, copper, coal and nickel. It has mining projects in North America and Australia.
The company stock has an EPS of $3.71 and a P/E ratio of 14.08. It has a market cap of $127 billion and trades more than 1 million shares per day. BHP has an annual dividend yield of 4.94%. It generated total revenue of $44 billion in 2019.
Recently, BHP announced that it will spend up to $20 million over the next 5 years to establish the West End district of Port Hedland in Australia as a vibrant commercial and community hub. This project includes improving the overall aesthetics and amenities, public infrastructure like playgrounds, picnic tables, seating and installation of 2 shipping containers.
Nucor
Nucor Corporation is a leading producer of steel in the U.S. Its products include structural steel, steel bars, steel joists, steel decks and cold-finished bars. The company also produces direct reduced iron that is used in its steel mills. It has 123 operating facilities in the U.S. and Canada.
The metal stock has an EPS of $2.58 and a P/E ratio of 17.16. It has a market cap of $13 billion and an average daily trade volume of 1.9 million shares. Nucor has an annual dividend yield of 3.54%. It generated a total revenue of $22.5 billion in 2019.
In June 2020, Nucor declared a quarterly cash dividend of $0.4025 per share to its shareholders. It is the 189th consecutive cash dividend payout from Nucor.
Source – NASDAQ
Rio Tinto PLC
Founded on the banks of the river in Andalusia, Spain, Rio Tinto is a pioneer in mining and metals. Its metal products include iron ore for steel, aluminum for smartphones and cars, and copper for wind turbines, electric cars and water treatment systems. Rio Tinto operates 60 projects and serves 2,000 customers in 36 countries.
The metal stock has an EPS of $4.88 and a P/E ratio of 11.84. It has a market cap of $96 billion and has an average daily trade volume of 2.9 million shares. Rio Tinto has an annual dividend yield of 6.55%. It generated total revenue of $43 billion in 2019.
In February 2020, Rio Tinto approved a $98 million investment for a new solar plant to power its iron ore mines in western Australia.
Rio Tinto (NYSE:RIO)
64.700
-0.03
[-0.05%]
Sell
Trade Now
–
50.92 – 83.21
1.62B
0.00K/2.80M
104.95B
1.62B
4.92/7.6%
89.750
0.00K
Cleveland-Cliffs Inc.
Cleveland-Cliffs is an iron ore and steel company. It has mining and steel manufacturing operations in the U.S., Canada and Mexico.
The iron stock has an EPS of $0.95 and a P/E ratio of 7.19. It has a market cap of $2.7 billion and has high liquidity with over 13 million shares traded per day. Cleveland-Cliffs has an annual dividend yield of 3.70%. It generated a total revenue of $1.9 billion in 2019.
In May 2020, Cleveland-Cliffs announced that its wholly-owned subsidiary, AK Steels, will be increasing the price of all carbon flat-rolled steel products by a minimum of $40 per ton on new orders from North America.
Source – NASDAQ
Biggest Iron Movers of the Day
Check out these iron stocks with the biggest price movements today.
You can also view these premarket movers to trade stocks before trading sessions open.
Strike When the Iron Stocks are Hot
Companies that mine iron ore distribute it to many regions including North America, Australia and Asia. Investing in iron stocks when construction and steel related-projects are on the rise can help you make the most of your investments.
Frequently Asked Questions
What are iron stocks?
Iron stocks are shares in companies related to the iron industry.
Answer Link
Which brokers deal in iron stock?
You will find a list of iron stock brokers on the list above.
Answer Link
What are the best iron stocks?
You will find Benzinga’s list of the best iron stocks above.
Answer Link
The post Best Iron Stocks by Chetan Shekar appeared first on Benzinga. Visit Benzinga to get more great content like this.