Metals and Mining Stocks Set for a Surge, Highlighting These Top Picks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Source: Barron's
ETF Overview: The State Street SPDR S&P Metals & Mining ETF provides exposure to trends in industrial and precious metals, reflecting the health of the U.S. metals and mining sector.
Performance Highlight: The ETF experienced a significant recovery, achieving a remarkable 141% increase during a 27-of-28-week winning streak since last April.
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Analyst Views on AA
Wall Street analysts forecast AA stock price to rise
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 56.080
Low
38.00
Averages
57.63
High
78.00
Current: 56.080
Low
38.00
Averages
57.63
High
78.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company’s operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, which generally include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company’s aluminum smelting and casting operations along with the Company’s energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of 26 operating locations across nine countries on six continents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Export Growth Expectations: EU exports to Australia are projected to grow by up to 33% over the next decade, with annual export value reaching €17.7 billion ($20.5 billion), further enhancing the EU's economic influence in the Asia-Pacific region.
- Critical Mineral Supply Assurance: The agreement secures EU access to critical raw materials from Australia, such as aluminum, lithium, and manganese, which are vital for the EU's economic security amid rising global geopolitical uncertainties.
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See More
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- Tariff Reductions: The newly reached trade agreement will see the EU eliminate around 98% of tariffs on Australian goods, including wine, dairy, and seafood, while Australia will remove tariffs on over 99% of EU goods, significantly boosting bilateral trade.
- Export Growth Expectations: EU exports to Australia are projected to grow by up to 33% over the next decade, with annual export value reaching €17.7 billion ($20.5 billion), further enhancing the EU's economic influence in the Asia-Pacific region.
- Critical Mineral Supply Assurance: The agreement secures EU access to critical raw materials from Australia, such as aluminum, lithium, and manganese, which are vital for the EU's economic security amid rising global geopolitical uncertainties.
- Investment Growth Potential: According to the Australian government, investment from the EU is expected to increase by over 87%, solidifying the EU's position as Australia's second-largest source of foreign investment and fostering deeper economic integration between the two regions.
See More
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- Long-Term Investment: Toyota announced a $1 billion investment across two U.S. plants as part of a broader plan to invest up to $10 billion domestically over the next five years, reflecting its long-term commitment to the U.S. market.
- Capacity Enhancement: Of this, $800 million will be allocated to the Georgetown, Kentucky plant to boost production capacity for the Camry sedan and RAV4 crossover, which is expected to significantly increase market supply for these models.
- SUV Production Expansion: The remaining $200 million will be directed towards the Princeton, Indiana plant to enhance production capacity for the Toyota Grand Highlander SUV, further addressing the growing demand for larger SUVs in the market.
- Navigating Tariff Challenges: Amidst tariff and trade agreement changes during the Trump administration, which are projected to cost Toyota 1.4 trillion yen this fiscal year, this investment aims to strengthen its production capabilities in the U.S. to mitigate costs.
See More
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- Increased Household Costs: According to the Yale University Budget Lab, U.S. households are expected to incur an average additional cost of $570 in 2026 due to tariffs, highlighting the direct financial burden on families, particularly affecting lower-income households more severely.
- Income Disparity Impact: Data shows that the bottom 10% of households face an annual tariff cost of $315, representing 0.8% of their after-tax income, while the top 10% incur $1,325, only 0.3%, illustrating the regressive nature of tariffs that disproportionately affect lower earners.
- Consumption Pattern Differences: The structure of household consumption determines the tariff burden, with families purchasing electronics and automobiles facing higher costs, while those leaning towards services are less impacted, indicating the critical role of consumption types in tariff effects.
- Geographical Factors Influence: The cost of living differences based on geographic location lead to uneven tariff burdens; for instance, a 1% price increase in California has a significantly greater financial impact than in Kansas, emphasizing the importance of location in tariff implications.
See More
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- U.S.-Iran Relations: The U.S. will delay strikes on Iran's energy infrastructure for five days to facilitate ongoing peace talks.
See More
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- Oil Price Surge Impact: Stocks fell as Brent crude briefly hit $119 per barrel following Iran's attack on a key LNG facility in Qatar, causing the S&P 500 to slip below its 200-day moving average for the first time since last May, raising concerns among long-term investors.
- Eli Lilly Drug Study Update: Eli Lilly reported that its Phase 3 study of retatrutide for type 2 diabetes showed superior weight loss compared to Mounjaro over 40 weeks, yet the stock remained stagnant as investors are more focused on the anticipated approval of its new GLP-1 pill next month.
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See More
Alcoa Shares Plunge as Aluminum Prices Drop Amid Iran War Concerns
- Aluminum Price Plunge: Aluminum futures on the London Metal Exchange fell sharply to $3,115 per ton, an 8% drop, marking the largest decline since 2018, driven by concerns over the economic impact of the Iran war, resulting in widespread losses across industrial metals markets.
- Alcoa Stock Drop: Alcoa (AA) shares plummeted 11% in early trading on Thursday, closely tied to the sharp decline in aluminum prices, indicating heightened investor concerns regarding the company's future profitability amid volatile market conditions.
- Rising Chinese Aluminum Stocks: Despite rising global aluminum prices, ANZ analysts noted that stockpiles in China continue to build, tempering some bullish price pressures while incentivizing Chinese producers to export more, which helps mitigate global supply risks.
- Middle East Import Dependency: The Middle East accounts for 8%-9% of global aluminum output but only produces 3% of alumina and 1% of bauxite, leaving smelters heavily reliant on seaborne imports, a structural issue that is particularly pronounced in the current market environment.
See More
