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Best Steel Stocks to Buy Now (2025)

Top steel stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best steel stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best steel stocks to buy right now are:

Friedman Industries (NASDAQ:FRD) is the #1 top steel stock out of 25 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Friedman Industries (NASDAQ:FRD) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Friedman Industries (NASDAQ:FRD) has a Due Diligence Score of 30, which is -1 points lower than the steel industry average of 31. Although this number is below the industry average, our proven quant model rates FRD as a "B".

FRD passed 11 out of 38 due diligence checks and has average fundamentals. Friedman Industries has seen its stock return 2.64% over the past year, overperforming other steel stocks by 5 percentage points.

Mesabi Trust (NYSE:MSB) is the #2 top steel stock out of 25 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Mesabi Trust (NYSE:MSB) is: Value: B, Growth: C, Momentum: B, Sentiment: C, Safety: D, Financials: A, and AI: C.

Mesabi Trust (NYSE:MSB) has a Due Diligence Score of 56, which is 25 points higher than the steel industry average of 31.

MSB passed 21 out of 38 due diligence checks and has strong fundamentals. Mesabi Trust has seen its stock return 52.52% over the past year, overperforming other steel stocks by 55 percentage points.

Arcelormittal (NYSE:MT) is the #3 top steel stock out of 25 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Arcelormittal (NYSE:MT) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Arcelormittal (NYSE:MT) has a Due Diligence Score of 47, which is 16 points higher than the steel industry average of 31.

MT passed 17 out of 38 due diligence checks and has strong fundamentals. Arcelormittal has seen its stock return 25.59% over the past year, overperforming other steel stocks by 28 percentage points.

Arcelormittal has an average 1 year price target of $31.70, an upside of 5.21% from Arcelormittal's current stock price of $30.13.

Arcelormittal stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Arcelormittal, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 13 steel stocks that have issued dividends in the past year, the 3 steel stocks with the highest dividend yields are:

National Steel Co (NYSE:SID) has an annual dividend yield of 6.56%, which is 5 percentage points higher than the steel industry average of 2.02%. National Steel Co's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. National Steel Co's dividend has not shown consistent growth over the last 10 years.

National Steel Co's dividend payout ratio of -69.9% indicates that its high dividend yield might not be sustainable for the long-term.

Mesabi Trust (NYSE:MSB) has an annual dividend yield of 4.86%, which is 3 percentage points higher than the steel industry average of 2.02%. Mesabi Trust's dividend payout is not stable, having dropped more than 10% fourteen times in the last 10 years. Mesabi Trust's dividend has shown consistent growth over the last 10 years.

Mesabi Trust's dividend payout ratio of 101.1% indicates that its high dividend yield might not be sustainable for the long-term.

Gerdau Sa (NYSE:GGB) has an annual dividend yield of 3.06%, which is 1 percentage points higher than the steel industry average of 2.02%. Gerdau Sa's dividend payout is not stable, having dropped more than 10% fifteen times in the last 10 years. Gerdau Sa's dividend has shown consistent growth over the last 10 years.

Gerdau Sa's dividend payout ratio of 39.6% indicates that its dividend yield is sustainable for the long-term.

Steel stocks were down -0.2% in the last day, and down -0.63% over the last week.

We couldn't find a catalyst for why steel stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued steel stocks right now are:

Mesabi Trust (NYSE:MSB) is the most undervalued steel stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Mesabi Trust has a valuation score of 57, which is 26 points higher than the steel industry average of 31. It passed 4 out of 7 valuation due diligence checks.

Mesabi Trust's stock has gained 52.52% in the past year. It has overperformed other stocks in the steel industry by 55 percentage points.

Worthington Steel (NYSE:WS) is the second most undervalued steel stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Worthington Steel has a valuation score of 57, which is 26 points higher than the steel industry average of 31. It passed 4 out of 7 valuation due diligence checks.

Worthington Steel's stock has dropped -19.4% in the past year. It has underperformed other stocks in the steel industry by -17 percentage points.

Arcelormittal (NYSE:MT) is the third most undervalued steel stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Arcelormittal has a valuation score of 71, which is 40 points higher than the steel industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Arcelormittal's stock has gained 25.59% in the past year. It has overperformed other stocks in the steel industry by 28 percentage points.

63.64% of steel stocks rated by analysts are a strong buy right now. On average, analysts expect steel stocks to rise by 11.2% over the next year.

0% of steel stocks have a Zen Rating of A (Strong Buy), 5.26% of steel stocks are rated B (Buy), 63.16% are rated C (Hold), 21.05% are rated D (Sell), and 10.53% are rated F (Strong Sell).