2 Aluminum Stocks Poised for Big Tariff-Related Gains

Summary

The price of aluminum has surged by almost 50% in the last year, reaching multi-year highs amid pressure due to the Iran war, domestic tariffs, and more. The shutdown of the Strait of Hormuz has had a particularly strong impact, given its critical role in the transmission of aluminum through the Middle East to other parts of the world. Higher aluminum costs have weighed on companies relying on the metal across a variety of industries, including automotive firms like Ford Motor Co. NYSE: F and beverage firms like Keurig Dr Pepper NASDAQ: KDP. All of these businesses must prepare mitigation strategies if material costs remain elevated to protect their margins. On the other hand, domestic aluminum firms like Kaiser Aluminum Corp. NASDAQ: KALU and Century Aluminum Co. NASDAQ: CENX may be better positioned, particularly thanks to Section 232 tariffs.Get Kaiser Aluminum alerts:Sign Up Kaiser Aluminum Could Benefit From Tariffs and Aerospace Business, But Valuation Is a RiskKaiser Aluminum is a producer of semi-fabricated aluminum products for a variety of different markets, including aerospace, automotive, electronics, and more. The company's earnings for Q1 2026 were very strong: more than 42% year-over-year (YOY) growth in revenue and an earnings per share (EPS) beat of $1.78, plus record EBITDA and solid guidance for the full year. Kaiser Aluminum Today$184.48 +9.01 (+5.13%) As of 02:17 PM Eastern52-Week Range$70.39▼$184.54Dividend Yield1.67%P/E Ratio20.10Price Target$159.50 The company is seeing demand strengthen while simultaneously boosting operational execution through improved facility performance. This has allowed the firm to boost margins by about 850 basis points YOY. Additionally, free cash flow for the first quarter reached $69 million, and the firm ended the quarter with liquidity of roughly $596 million, giving it plenty of flexibility going forward. With Section 232 tariffs including a 50% tariff on many aluminum imports and aluminum-based products, domest...