It's a great time to be invested in metals and mining, with top names in the industry expected to outperform the market with attractive returns, Goldman Sachs analysts wrote Tuesday.
"Two years after commodity prices started returning to life in the spring of 2016, many long-standing themes for the North America metals and mining industry look familiar on the surface but are in fact richly different on a closer view," explained Goldman analyst Matthew Korn.
"Our coverage view on the North America metals and mining sector is Attractive, with the stocks supported by a diverse combination of good fundamentals," the analyst added. "Commodity prices are high [and] the supply side for metals and bulks looks more rational than it has been in years."
Korn told clients that while the global steel industry remains China-dominated, mills are expanding in the U.S. while the Chinese shutter "old, outdated" capacity. Aluminum, too, looks attractive, driven by technology and transportation demand.
A bank famous for investments in commodities, Goldman Sachs's equity research team initiated coverage on a slew of major names, complete with company-by-company synopses and price targets.