3 Materials Stocks Under Heavy Accumulation in 2023
Here are 3 companies under heavy accumulation this year.
Southern Copper Corp. (SCCO) Analysis
First is Southern Copper Corp. (SCCO) which develops and produces materials including copper, silver, and zinc. The stock is up a staggering 24% in 2023, but more impressive is its 60% climb the last 3 months.
Healthy institutional accumulation has likely helped lift the shares higher, which you can see below. Since November there’ve been 13 unusually large volume inflows (green bars):
With a 12-month forward P/E of 23.2, shares could be attractive after a pullback. Additionally, a 4.6% dividend yield makes the shares attractive.
One thing is for sure, the shares have been in demand lately.
Steel Dynamics Inc. (STLD) Analysis
Next up is Steel Dynamics (STLD) which is a large manufacturer and metal recycler. At MAPsignals, we believe in following large institutional flows. With the stock gaining 10% in 2023, we believe healthy accumulation is part of the story.
Since October there’ve been 10 days where the stock jumped in price alongside outsized volumes. That can mean there’s institutional interest:
The 12-month forward P/E is pegged at 9.5X according to FactSet. The shares pay a decent 1.3% dividend yield.
This trading action suggests investors are expecting upside for the company in 2023.
Commercial Metals Co. (CMC) Analysis
The number 3 materials firm racing higher this year is Commercial Metals Co. (CMC). This company manufactures and recycles steel and metal products. The market cap is just over $6 billion.
The stock has been an outperformer recently, jumping 7% in 2023. Notably, the shares have seen 8 large inflow signals since October:
There’s no question the stock could be extended at these levels. However, this is one of the most in-demand materials stocks according to MAPsignals research.
Strong sector leadership could mean there’s more upside for the group in 2023.
SCCO, STLD, & CMC represent 3 of the top performing materials stocks so far in 2023. Healthy institutional accumulation signals make these stocks worthy of extra attention.
To learn more about MAPsignals’ institutional process please visit: www.mapsignals.com
Disclosure: As of the time of this writing, the author holds no positions in SCCO, STLD or CMC at the time of this writing.