‘Time to Buy,’ Says J.P. Morgan About These Top Aluminum Stocks

Despite the strong jobs numbers for April, the overall economic outlook heading toward the second half of the year remains grim. Against a backdrop of elevated interest rates and recent bank failures, the odds of a recession hitting later this year are up to 64%. It’s an environment almost tailor-made to keep investors nervous – and looking for ‘recession proof’ sectors.

In a recent report from JPMorgan, analyst Bill Peterson sees just such an opening in the aluminum sector. Peterson has taken a deep dive into the complexities of aluminum production and products, and found that the sector presents a number of advantages that should provide long-term support, even in a downturn.

“Aluminum’s light weight and recyclability mean it will play a key role in the transition to a greener economy… J.P. Morgan’s Commodities Research team sees demand for aluminum in EVs, wind, and solar growing from around 2.4Mt in 2020 to 3.8Mt by 2025, reflecting a ~10% CAGR, which we think has significant potential for upside on the accelerated adoption of EVs based on IHS’s forecast of 23% and 45% penetration by 2025 and 2030, respectively,” Peterson explained.

Peterson isn’t just analyzing the aluminum industry as a whole, he’s also putting his finger on two stocks that he sees as winners. In fact, he’s projecting more than 40% growth potential for both of them. According to TipRanks, the premier source of analyst insights and research, these stocks also boast significant double-digit upside prospects, as evaluated by other analysts in the field. Here are the details.

Constellium SE (CSTM)

We’ll start with Constellium, a Paris-based global industrial leader, with a strong position in the manufacture of aluminum products. The company also works at the development of new uses for aluminum, and is a leader working with recycled aluminum metal. Constellium is known for its advanced alloys and engineering, and its aluminum products are found in a range of applications, from the simple soda can to aircraft, cars, and packaging.

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Constellium does all of…


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