3 Stocks to Own for the Industrial Renaissance

Recently, we have discussed the necessary physical infrastructure that will need to be built to facilitate the growth and spread of AI. Today, I’ll expand by sharing three individual companies that could thrive amid this buildout. But first, a little background…

A note from our sponsors...
Big Data gold rush: $PLTR passes $400B. $MODE prepares  

Palantir grew 900% in 2 years. Mode Mobile? A staggering 32,481% in 3 years—ranking it North America's fastest-growing software company.  
While Palantir profits off your data, Mode lets you cash in. Over 50M users have already earned or saved $325M just by using their phones.  
Walmart and Best Buy carry their devices. Nasdaq ticker $MODE secured. And now, you can get in before a potential IPO at just $0.30/share.  
The next data giant isn't just helping corporations—it's helping you.  

Pre-IPO offer closing - claim your piece of the $MODE now.
  

Disclosure: Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. Please read the offering circular and related risks at invest.modemobile.com.  

Surging Demand and Tariffs

While there will be many beneficiaries, this transformation will also serve as a potent secular tailwind for industrial commodities that should persist over multiple market cycles. Additionally, the sector is seeing a major cyclical catalyst in terms of tariffs which is leading to increased profits. 

In more typical circumstances, the imposition of tariffs would erode demand. However, demand is unlikely to be affected by higher prices given the huge amounts of capex that will be spent on modernizing the electric grid and increasing electricity production over the next decade.

At the same time, the sector is emerging from a prolonged period of oversupply. This resulted in producers prioritizing cutting costs and returning capital to shareholders rather than investing in new projects. 

The Last, Great Commodities Bull Market

In fact, there are some striking similarities to the last great industrial commodities bull market. This is largely due to human nature which leads to repeating market dynamics. 

To understand this, we must look at the late 1990s. At that time, a significant amount of capital was flowing into the tech sector. Additionally, industrial commodity prices floundered due to weak growth in Asia, leading to stagnant industrial CapEx. 

When demand started surging due to a boom in China and other emerging markets, it resulted in a multiyear bull market. To illustrate the scale of gains, copper prices more than quadrupled, iron ore prices went from $10/ton to over $150/ton at its peak, and nickel prices surged more than 700%.

A Decade of Underinvestment

We are seeing a similar setup today, albeit with subtle differences. For the past decade, producers of industrial commodities have underinvested in new production. 

Capital expenditures for the sector are below 2010 levels on a nominal basis. Historically, commodity bull markets don’t end, until there is a sufficient supply response and spike in capital expenditures. 

However, it’s likely that there won’t be a meaningful supply response until prices climb higher and remain there for an extended period of time given that many operators still have scars from overinvesting in new capacity at the tail end of the last bull market. 

Meanwhile, demand will certainly surge and be a formidable and inelastic force over the next decade with an expected $1.4 trillion in spending over the next 5 years on modernizing and upgrading the electric grid.

Leveraging Insights

To navigate this unique opportunity, investors need an objective system to identify which companies are best positioned to leverage this new reality. Our proprietary Zen Ratings System analyzes 115 different factors to identify top-tier stocks. Historically, A-rated stocks have delivered average annual returns of 32.5% over the past 22 years, while B-rated stocks have annual returns of 19.9%.

While the macro story is compelling, the real opportunity lies in identifying the individual companies that will thrive. Our Zen Ratings system has flagged three such companies: Worthington Enterprises (NYSE: WOR), Freeport-McMoRan (NYSE: FCX), and Kaiser Aluminum (Nasdaq: KALU).

1. Worthington Enterprises (NYSE: WOR)

Previously, Worthington Enterprises was a traditional steel company. However, over the past decade, the company has transformed itself into a more specialized producer of higher-margin, finished products. Examples include pressure cylinders, water systems, and framing.

Thus, WOR is directly in the supply chain for grid modernization and the construction of new data centers. Although WOR is negatively impacted by tariffs due to higher input costs, the company has so far been able to pass on these costs to customers. 

Since the tariffs were implemented in April, WOR stock is up more than 50%. Additionally, analysts have increased their forecast for full-year earnings by 15%. In its last earnings report, the company exceeded estimates on the top and bottom-lines. In the conference call, CEO Joe Hayek mentioned that Worthington’s strong performance was driven by ‘increased volumes and improved gross margins’ with particular strength in the Building Products segment.

In terms of the Zen Ratings, WOR has earned a coveted Strong Buy (A) rating. As mentioned above, this category of stocks has nearly triple the average annual return of the S&P 500 at 32.5% v. 10.8%. 

In terms of Component Grades, WOR is rated a B for Momentum and Sentiment. The momentum grade is due to the stock’s strong performance this year, in addition to its consistent improvements in operational metrics. The Sentiment grade reflects growing analyst optimism, bullish insider activity, and positive earnings revisions. 

A note from our sponsors...
Access Before Tuesday...   

Jim Fink is just moments away from issuing two brand new trades designed to double their money (or more) in 3 to 10 days... and you're invited to get in on the action. I would caution you not to overlook this opportunity... Over the last 10 years (through multiple downturns) Jim has closed out 97% of his recommendations "in the green." His next two trades go live on Tuesday... Investors who want in should move NOW.  

Grab your first two primed-to-double trades here.

2. Freeport-McMoRan (NYSE: FCX)

Freeport-McMoRan is one of the world's largest copper producers. The company has a portfolio of proven, geographically diverse assets, including the Grasberg minerals district in Indonesia and significant operations in North and South America. 

In terms of production, FCX's outlook is strong. This year, the company projects consolidated volumes of approximately 3.95 billion pounds of copper. On the cost side, FCX reported a consolidated average unit net cash cost per pound of copper of just $1.13 in Q2 2025.

FCX benefits from tariffs given that it's the dominant producer of copper in the United States. The company has exceeded analysts’ estimates for 3 straight quarters. Additionally, earnings estimates for 2025 and 2026 have been hiked by 20% since tariffs were announced. 

Overall, FCX is one of the best ways investors can get exposure to copper which is a necessary component for the trillions that will be spent on upgrading and modernizing the electric grid all over the world.   

In terms of the Zen Ratings, FCX has a Buy (B) rating. Despite its recent performance, the company is attractively valued with a forward P/E of 15.6 which is cheaper than the S&P 500’s forward P/E of 23. It also offers investors a 1.5% dividend in addition to 7% net profit margins which should increase in the current tariff regime. 

FCX also has strong Component Grades including a B for Growth. This is due to the company’s trend of margin expansion, earnings growth, revenue acceleration, and free cash flow momentum. Currently, analysts have a consensus forecast of 33% annual earnings growth over the next 3 years.

3. Century Aluminum (Nasdaq: CENX)

Century Aluminum is a global producer of aluminum, a critical metal for the modern economy. CENX is one of the largest domestic aluminum producers with its products being used in a wide range of applications. Of course, aluminum is integral in efforts to modernize the electric grid given its lightweight and conductive properties. 

The company has a total production capacity of well over 700,000 metric tonnes per year. Given that it is one of the largest domestic producers of aluminum, CENX benefits from current trade policy especially with the recent hike in tariffs on imported aluminum from 25% to 50%. It’s also worth noting that tariffs on aluminum enjoy wider, bipartisan support given that the bulk of imported aluminum is produced by less environmentally friendly methods. 

If our thesis of a bull market in industrial commodities is proven correct, then aluminum stocks have considerable upside. During the last commodities bull market, CENX climbed from a low below $6 to a high of nearly $80 in less than 8 years. 

In terms of the Zen Ratings, CENX has a Buy (B) rating. B-rated stocks have posted an average annual return of 19.9% which handily beats the S&P 500’s average annual return of 10.8%. 

CENX also has B grades for Growth and Value. In terms of value, CENX is significantly cheaper than the market average with a forward P/E of 7.8 and peers in the industrial sector.  

In terms of growth, analysts project that earnings per share will more than double over the next 3 years. Similarly, gross margins have climbed from 1.5% to 9.8% over the last 3 years, and this expansion should continue due to the demand impulse from increased capital expenditures in addition to tariffs lifting prices and constraining new supply.

Conclusion

We are again at an inflection point. 

The bill is coming due after more than a decade of underinvestment in capital expenditures. Now, there is even more urgency to act given that these investments need to be made in order to facilitate the growth and distribution of new technologies. 

What to Do Next?

• 9 Special Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.