3 Stocks to Potentially Fortify Your Portfolio This Winter

While gold is in the news, it isn’t as sturdy as steel. Given its use in construction, everyday life, and more, steel demand isn’t going anywhere. And there are plenty of companies doing well in the space that are worth your attention.

Not all steel stocks are the same, though. We have our Zen Ratings system to pick out the best from the rest. A-rated stocks have an average annual return of +32.52%. With that in mind, here are 3 A-Rated stocks in the steel industry:

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1. Steel Dynamics Inc (NASDAQ: STLD)

A producer and metal recycler in the US, STLD recently got upgraded from a C to an A Zen Rating. Why? Factors include that it has been reviewed more favorably by analysts in recent months, has a very optimistic outlook, and reported Q4 earnings that beat estimates.

These are partially reflected in STLD’s Component Grades (see below), which all indicate that the stock could be a value proposition with a decent prospect for future growth. No single factor may give it the highest overall grade, but the sum of these parts paints a picture worth looking at.

2. Commercial Metals (NYSE: CMC)

Using an interesting network of “minimills”, CMC has more of a history in scrap metal and trading, though it manufactures metal products and handles some services as well. That said, it has an $8.48B market cap and has been around for more than 100 years, so it’s more than its story might lead you to believe.

Overall, it has had an excellent year, with a share price rise of +51.62% over the last 12 months. And yet keeping that in mind, it still has a Component Grade of A for Safety, and a B for Value, Growth, Momentum, and Financials. Investors might find this stock a rare opportunity for growth from a relatively stable company.

3. Friedman Industries (NASDAQ: FRD)

Primarily working in pipes and coils, FRD is a United States company, mostly servicing distributors and larger manufacturers that may need those products. You may want to note recent earnings growth, its smaller market position, and its expansion into new markets (Latin America and the Southeastern U.S.).

FRD appears to be a prospect for growth- and value-oriented investors: while the stock has had a rough 3 months, the outlook seems more optimistic, and some investors may want to buy the dip. For those interested, it also has a modest dividend, though it isn’t a dividend stock per se. Investors will want to review its fundamentals regularly, whether it maintains the momentum, and the general demand for steel from its main clients.

Looking for more information on any of the above stocks or others (steel or not)? Want to feel more confident in your investing decisions? Then WallStreetZen Premium is for you. It provides you with all the fundamental information you might need, an unlimited watchlist, and more.

Want a more guided approach to investing and a better understanding of the market? Zen Investor is what you need. You will gain access to a model portfolio based on Steve Reitmeister’s 40+ years of experience and the Zen Ratings system, bringing you the best of both worlds. You’ll also receive regular updates and commentary from Reitmeister about the state of the market, so you can have a better understanding and peace of mind.

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