Despite the helter-skelter manner in which the Trump administration has operated, one thing has become pretty evident to investors and Wall Street. The president tends to stick to his word and really seems bent on delivering campaign promises. One of those promises is the infrastructure build-out, and combined with what appears to be an improving economy and sentiment by business, some stock market sectors that could play a big part are really getting some solid traction.

One of the subsectors that looks very solid right now is the metals arena, especially the top steel companies. In a new research report, Deutsche Bank raises its price targets on the top companies in the firm’s coverage universe. The report noted:

We continue to favor non-integrated companies and those that could benefit from higher US-centric growth rates, particular construction and infrastructure-linked Steel names. We retain overweight the sector with 9 Buys, 4 Holds and 1 Sell.

Here we focus on the stocks rated Buy on which the analysts are raising price targets.

Arconic

This company has seen massive insider buying as a major hedge fund has sought to make major senior management changes. Arconic Inc. (NYSE: ARNC) engineers, manufactures and sells lightweight metals of aluminum, titanium, and nickel worldwide. It operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.

The company recently announced a multiyear supply deal with Toyota North America. Arconic is supplying aluminum to Toyota for its all-new Lexus RX. The vehicle debuted last year and became Toyota’s first vehicle in North America to prominently feature aluminum exterior panels.

Arconic investors are paid a small 0.9% dividend. Deutsche Bank raised its price target to $32 from $28. The Wall Street consensus target is set at $28.25. The stock closed Wednesday at $26.50 a share.

Nucor

This top steel company could do very well if the economy sees a solid pickup this year and the administration’s infrastructure push remains in place. Nucor Corp. (NYSE: NUE) and its affiliates are manufacturers of steel products, with operating facilities primarily in the United States and Canada. The company also is North America’s largest recycler.

Nucor products produced include: carbon and alloy steel, in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Through the David J. Joseph Company, Nucor also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap.

While the residential construction market could slow down some in 2017 after years of a very torrid pace, top Wall Street analysts remain positive on nonresidential commercial construction. Nucor always has kept a very conservative balance sheet and is poised for slow but steady growth next year and beyond, especially of a huge infrastructure build-out becomes a reality.

Nucor investors receive a very solid 2.43% dividend. The Deutsche Bank price target was raised to $78 from $75. The consensus target is $66.73, and the stock closed Wednesday at $62.14. The stock will go ex-dividend on March 29.

Steel Dynamics

This is another company that the Deutsche Bank team is very positive on, especially if the border tax is put in place. Steel Dynamics Inc. (NASDAQ: STLD) operates six steel mini-mills in Indiana, Virginia, Mississippi and West Virginia. Production capacity has been nearly 10 million tons, of a total 110 million U.S. capacity.

The company makes flat rolled products, special/merchant bars and structural steel products. Steel Dynamics can process about 7 million tons of ferrous scrap and has a downstream operation that processes finished steel.

Shareholders are paid a 1.78% dividend. The $42 Deutsche Bank price target was raised to $45, and the consensus target is $41.85. The stock closed most recently at $34.80.

U.S. Steel

This is the granddaddy of the domestic steel producers and another stock rated Buy at Deutsche Bank. United States Steel Corp. (NYSE: X) is an integrated producer of flat carbon steel and pipe with a total 22 million tons of capacity in North America and Slovakia.

U.S. Steel’s system includes 11 blast furnaces in the United States and three blast furnaces in Slovakia. The company is the largest North American producer of seamless and welded tubular products.

It posted a solid fourth-quarter earnings beat, and analysts across Wall Street have turned decidedly more positive on the company and the prospects for this year and going forward.

Shareholders receive just a 0.6% dividend. The Deutsche Bank price objective was raised to $45 from $40. The consensus target is $37.15, and shares closed Wednesday at $34.56.

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These companies have traded higher, so it may make sense to buy partial positions and see if the market doesn’t pull back from record highs. Either way, steel prices are expected to remain solid in 2017 and beyond, and the potential for some trade barriers to foreign steel could also prop up things.

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