Trump’s $15B Steel Bet: 4 Stocks Behind the Factory Boom

President Trump just announced the largest steel plant in American history, a $15 billion mega mill in Iowa. Now, the catch is that it's privately held, so none of us can buy shares in it, but that doesn't mean that we can't potentially benefit from this powerful catalyst. So, I ran all the US-focused steel-related stocks through our coveted Zen Rings Quant model, and four great stocks emerged. That is what we're going to focus on today, all the best companies that mine it, melt it, forge it, and build it. And I saved the highest rated of all these stocks so be sure to stick around all the way to the end to see all these great stocks. Now, let's take it from the top to appreciate what just happened and why it matters. Now, President Trump announced that a company called Mesabi Metallics will build a $15 billion steel complex in Iowa, the largest steel plant in American history. And this plant gets fed by a brand new $2.5 billion iron ore mine up in Minnesota's Iron Range. That is nearly $18 billion in total investment with production targeted to start in 2030. Now, let's remember the Trump administration already announced a 50% tariff on imported steel. The goal is to make steel a national priority and increase domestic production. Now, this reshoring of US-based steel benefits everyone in the pipeline, from those that mine the raw materials, make the steel, forge the high-grade metal, and build it all in, you know, construction projects all around the country. Now, the question is which one of these companies will benefit the most. Now, before I answer that question about the four top stocks today, I should probably tell you who the heck I am. I'm Steve Wright Meister, but everyone calls me Wrighty. I'm a partner at wallstreetszen.com, where our quant rating system analyzes a wide array of data points to separate the best opportunities from all the noise and nonsense. So, here's how it works. Our quant ratings model reviews 115 different fundamental, technical, and AI factors, then boils it all down into one intuitive letter grade of A to F. And indeed, the higher the grade, the higher the expected returns for those shares. Now, note, that most of steel-related stocks are actually pretty poorly rated. That's because it is a boom and bust industry that leads to erratic earnings and spotty balance sheets. So, I had to sort through a lot of rubble to unearth the four highly rated stocks in the video today. And if you like the idea of top stock picks vetted by a proven quant model, then please tap that like button as it tells the algorithm to show you more videos like this in the future. Now, we're going to get the party started with Steel Dynamics with the symbol of STLD. This is one of the largest steel makers in America. You've probably heard about it before. It happens to also be one of the biggest metal recyclers. That part is one of their biggest competitive advantages. Now, Steel Dynamics is one of the purest ways to own US steel comeback, which we just walked through thanks to those 50% tariffs being levied on imported steel. And the numbers back it up. Wall Street experts are calling for earnings to grow more than 20% in the year ahead and that's a heck of a lot faster than the steel industry as a whole. Just as pleasing as their outsize growth is the attractively undervalued shares. Now, we get to see that value through the lens of the modest PEG ratio of just 1.0 when the average stock these days trades closer to 1.5. Now, let's appreciate how Steel Dynamics scores across the 115 factor review of the Zen Ratings Quant Model. They land in the top 15% of all stocks leading to a B rating, which amounts to a buy recommendation. Now, that's a fair label because B-rated stocks have nearly double the returns of the S&P 500 as we go back the past 20 years. Now, next up we're going to review the seven underlying component grades for Steel Dynamics, which is also part of the Zen Ratings Model. This helps point out the unique strengths and weaknesses of any stocks. We get started with financial strength where Steel Dynamics scores in the top 19% of all stocks review. The AI factor grade is in the top 18%. Now, this is about our usage of AI to find patterns that point to the most timely stocks. Top 18% is a pretty good idea in that area. And the standout of the group is growth up in the top 14% all stocks. This nicely foreshadows more growth and more earnings beats ahead. The one thing to keep in mind here, steel is a cyclical business. Now, when the economy cools, demand cools with it, and that's just the nature of the beast. But with the economy on strong footing and tariffs as a tailwind at their backs, then you understand why the cycle is now in their favor. That makes Steel Dynamics the perfect foundation to kick off our stock picking video today. Before I get to the next steel-related stock, here's something that might interest you very much. I've put together a list of three stocks I believe could double in the year ahead. Now, I located them using the same Zen Rings model I used to review the stocks in the video today. Now, you can get these three tickers for free just by visiting wallstreetzen.com/double or scan the QR code coming to your screen, or click that link in the description down below. Time to claim your copy of those three stocks right now. Okay, let's move on to our second steel-related stock today, and here's the setup. Some of the most valuable metal in this entire boom is the high-grade stuff that goes right into fighter jets and the power grid. And that's exactly what our next company makes. It's living on I'm talking about Allegheny Technologies with the symbol ATI, which is currently a Wall Street darling. Now, ATI is an American specialty metals powerhouse. We're talking about titanium, nickel-based superalloys, and high-grade grain-oriented electrical steel. The kind of metal that goes into a jet engines, a defense system, massive transformers that run our nation's power grid. And the timing could not be better. Defense spending is way up and shows no signs of slowing, which is great for ATI because 2/3 of their business is focused on aerospace and defense. Now, layer on top of that the massive power grid buildout taking place, and you've got multiple tailwinds blowing in the same direction for this company. Now, this shows up in spades in their streak of seven straight earnings beats. Now, all of them showing off pretty some pretty impressive year-over-year growth. That's the kind of operational consistency that this doesn't happen by accident, right? This is happening because it's a well-run company and more likely to happen in the future. Now, the good times seem to keep rolling. That's because Wall Street analysts predict that earnings will grow by another 30% in the year ahead, much faster than industry peers. Now, here's where the investment case gets real juicy. The same Wall Street analysts who are calling for that 30% growth are unanimously bullish on these shares, meaning seven analysts are covering ATI and seven analysts are firmly in the strong buy camp. That is about as bullish as Wall Street gets. Now, one of the loudest voices in the room is Charles Minerino of Susquehanna, who ranks in the top 4% of analysts for his stock picking performance track record, right? Meaning he knows a thing or two about picking good stocks. He's got a fair value target implying nearly 40% upside in the year ahead. Now, I think that might prove to be on the low side if they keep banging out those quarterly earnings beats. Now, the last stock we talked about, uh, Steel Dynamics, scored in the top 15% of the ZACKS ranks model. This one steps it up to the top 7% of all stocks after that full 115 factor review. For clarity, we mean that we find it more attractive than 93% of stocks out there. Once again, the component grades show where it really flexes its muscles. We start with momentum in the top 20% of all stocks followed by sentiment in the top 10%. Now, that sentiment score tells us that the smart money is already moving into shares. Financial strength is also impressive in the top 10% of all stocks. Growth, uh, top 8% foreshadows more earnings beats ahead, and the standout grade is safety, all the way up in the top 7% of stocks analyzed. Growth and safety rarely go hand in hand, and yet here they are, which only makes ATI that much more attractive. Now, the biggest knock here is that shares are up about 100% over the past year as folks definitely caught wind of the growth story. Gladly, uh, we've seen a round of top profit-taking with shares off about 20% from the highs. This recent dip makes for a much more appealing entry point for a company enjoying the benefits of the reassuring of American metal. This all explains the stellar Wall Street support and the vote of confidence in the Zen Rings quant model pointing to ample upside ahead. Now, it's time to forge some of these shares into your portfolio as well. Now, a quick ask before we move on to our first A-rated stock in the video today. Now, if you're getting value out of this video, then please go ahead and hit that subscribe button and that cute little notification bell. That's because I publish data-driven stock analysis like this every single week and those actions are the best ways to ensure you see my future videos. Now, every ounce of steel starts with something you have to dig out of the ground. So, for our next pick, we're going underground. This brings us to Warrior Met Coal with a symbol of HCC. That is an American miner of metallurgical coal and that is the raw ingredient that goes into making steel. They run two mines down in Alabama producing some of the highest quality coal on the planet. The timing here is great because global steel demand is humming right along. At the same time, Warrior's ramping up a brand new mine called Blue Creek that will be one of the lowest-cost producers of this kind of premium coal. Just like our last stock, the timing looks pretty darn good as shares have actually pulled back over the past month giving us a nice buy-the-dip opportunity. Wall Street experts see all these catalysts paying off leading to about 35% earnings growth in the year ahead. Now, that is much faster than the tepid pace of their industry peers. Now, we're getting growth here and we're getting a downright steal. Yes, pun intended. That's because Warrior carries a PEG ratio of just 0. 71, right? The last stock was 1.0. Remember, the average stock sits at 1.5 PEG, right? So, this one could literally double in price and still be considered undervalued by this measure. Exactly as you would expect from an under-the-radar miner like this one, the Wall Street coverage is pretty light. Luckily, we have two analysts proud enough to wave the strong buy banner. Even better is the fair value price targets pointing to ample upside in the year ahead. Now, let's appreciate the outlook from our Zen Rings Quant model where Warrior is our first stock to earn that coveted A rating. It's good to know that our A-rated stocks have nearly tripled the returns in the S&P 500 over the past 20 years, right? So, that label means something. Indeed, the component grades show off a wide array of strengths for this firm that includes four grades in the top 15% of all stocks ranging from value to growth to financial strength to our AI factor, which is our timeliness grade. Note that the value grade goes way beyond the PEG ratio that we just talked about, right? All in all, it's based on 21 different measures of value. So, being the top 15% means it is more attractively priced than 85% of the stocks out there. Now, one risk worth noting, the commodity itself. As you might imagine, coal prices rise and fall with global steel demand, and that ride can get a little bumpy for the stocks involved. But, with a new mine coming online pumping up their growth outlook, plus the elite A grade from the Zen Ratings model, and ample Wall Street support, then you appreciate why this stock is being highlighted today. Now, before we get to the last stock, which is usually the strongest one of the bunch, I have one quick thing for you. If you want to stay a step ahead of the pack, then join me live every Monday. That is when I share my updated market outlook and trading plan to outperform. It's also why I unveil my trade of the week based upon our proven Zen Ratings Quant model and my greater than 40 years of investing experience. Now, yes, it's a free event, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description down below, or scan the QR code on your screen. Now, just pause the video for a moment to sign up. I'll be patient and wait for you. Then, I look forward to seeing you there on Monday. And hey, even if you can't join this Monday, you should still sign up. That's because we send a replay to all registrants to watch whenever it's more convenient. Okay, as per usual, I'm leaving the best stock for last. This is my personal favorite, which is why it's one of the 20 stocks in my Zen Investor Newsletter portfolio. Go check it out when you have some time. Now, let me introduce you to Tutor Perini with the symbol TPC, which is one of America's biggest construction firms. Now, they build massive specialty projects like infrastructure and transit system and civil projects that take a special level of skill that indeed this company has. Now, their unique services are in high demand, which explains 20 billion in business already on the books, right? A backlog of 20 billion dollars. To be clear, this is 3 years worth of business already in hand, which provides great visibility to their future growth outlook, which indeed is very bright. This explains the Wall Street expectations for 70% earnings growth this year. This far, far, far outpaces the competition. Once again, we have outsize growth, and once again, we have outsize value that comes into focus with their rock-bottom PEG ratio of 0.57. Now, this combination of serious growth and value no doubt explains the smattering of Wall Street analysts pounding the table on shares calling for massive upside in the coming year. One of the funniest things about TPC is that investors keep thinking they are part of the data center build-out, and thus shares take a hit every time the AI stocks sell off. And that is happening right now in a big way, even though TPC's got nothing to do with it. Gladly, this means we get to scoop up shares for about 25% off the all-time highs, indeed a juicy buy-the-dip opportunity. You already know what comes next. Uh so yes, this is another top-ranked name according to the Zen Ratings quant model. All in all, they score in the top 4% all stocks based upon that full 115 factor review leading to the coveted A rating. On top of that, TPC is the number one ranked stock out of 43 in the A-rated engineering construction industry, right? It's never a bad idea to go for the very best stock in one of the best industries. Now, as for the component grades, uh that party gets started with top 10% showing for sentiment. This tells us the smart money crowd is already circling around these shares. Safety is also impressive in the top 10% all stocks, and the standout grade is for growth, all the way up in the top 6%. This bodes well for them hitting that 70% growth target that should propel shares much much higher. The main weak spot is the timing and lumpiness of earnings. That's often the case with enormous multi-year contracts, but right now they are crushing it on the earnings front. So, this seems like a very modest risk. Pulling it back to the big picture, these guys are enjoying the benefit of a $20 billion backlog of business pointing to tremendous growth prospects. On top of that, you have multiple signs of attractive value including a rock-bottom PEG ratio. And finally, this is the number one ranked stock in the very attractive engineering construction industry. This makes Tutor Perini the perfect choice for our grand finale stock today. So, there's your blueprint for capitalizing on President Trump's big bet on American steel. Four very different stocks that should benefit. You just need to decide which one is the best one for your portfolio. Now, a good time to remind you the Zen ratings are updated every single day on wallstreetzen.com. So, always a good habit to check those fresh ratings for any stock before making any buy, hold, or sell decisions. Now is a good time to bookmark the site for all your future visits. So, which of these four stocks your favorite? And are there any steel-related names I missed that should feature in future videos? Drop it on the comment section below. Note that steel is not the only industry benefiting from government policies. Check out the video popping up your screen sharing the defense technology stocks benefiting the most from a new wave of massive investment.