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Best 3 aluminum stocks to buy as the metal’s price surges

Mircea Vasiu

Metals are in strong demand as the Russia-Ukraine war further disrupts supply chains. So, what are the best aluminum stocks to buy as the metal’s price surges?

Metals prices go through the roof as strong demand pushes them higher. The Russia-Ukraine conflict further intensified the supply chains disruptions and so the prices surged.

Take nickel, for example. Only yesterday, it jumped 30%. Aluminum is also in a bullish trend – the price per tonne almost tripled in the last couple of years.

So, what are the best aluminum stocks to buy as the metal’s price surges? Here are three: Alcoa, Arconic, and Constellium.

Alcoa

Alcoa (NYSE:AA) is an American aluminum producer valued at over $16 billion at the current stock market price. The stock price had been on a rollercoaster in the last years, as the COVID-19 pandemic severely impacted demand for aluminum.

However, the stock is on fire lately, surging close to all-time highs when stocks in other market corners tank.

Alcoa’s stock price rose more than +190% in the last twelve months, and the company also pays a quarterly dividend.

Arconic                      

Arconic (NYSE:ARCN) is another aluminum producer from the United States. Now that the aluminum prices have surged to new record highs as Russia sanctions stepped up, this aluminum producer established in 1888 is an interesting option to add to a portfolio to gain exposure to the aluminum market.

Arconic’s stock price has been flat over the past twelve months, and the P/E ratio is currently below the sector’s median.

Constellium

Constellium (NYSE:CSTM) is a France-based aluminum producer doing business internationally. The stock price surged +17.79% in the past twelve months, and at the current price, the company has a market capitalization of $2.53 billion and an enterprise value of $4.8 billion.