|Bid||2.4300 x 28000|
|Ask||2.4400 x 39400|
|Day's Range||2.3900 - 2.5450|
|52 Week Range||1.6600 - 4.8100|
|Beta (3Y Monthly)||2.97|
|PE Ratio (TTM)||4.71|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.98|
Moody’s turned bearish on the US steel sector and downgraded the sector’s outlook from stable to negative. However, US steel stocks have been largely stable.
If you want to know who really controls AK Steel Holding Corporation (NYSE:AKS), then you'll have to look at the...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of AK Steel Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
With a knowledge of technical analysis, investors in penny stock may be able ride out the wildest fluctuations of a volatile market.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
WEST CHESTER, Ohio, Sept. 23, 2019 -- AK Steel (NYSE: AKS) said today that members of the United Auto Workers (UAW), Local 3462, have ratified a new 46 month labor agreement.
Wall Street cut ratings on five steel-related stocks, with no offsetting upgrades. It is a capitulation that prices aren’t going to improve despite higher raw-material costs or import tariffs.
AK Steel is up slightly on J.P. Morgan's double downgrade in a report that warns about uncertainties facing the steel industry.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Cleveland-Cliffs Inc. New York, September 20, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Cleveland-Cliffs Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Disappointing guidance from some of the major U.S. steel makers has raised worries about a possible weak Q3 earnings season for the U.S. steel industry.
WEST CHESTER, Ohio, Sept. 18, 2019 -- AK Steel (NYSE: AKS) said today that it plans to release its third quarter 2019 financial results following the close of trading on the.
U.S. Steel (NYSE:X) stock has gotten hammered in the past year. X stock is down 58% over the past 52 weeks. Since January, shares have slid from around $18 a share down to about $12.23 a share at the close Sept. 9.U.S. Steel rebounded from all-time lows during the Great Recession, but despite a bull market since the early 2010s, the X stock price has failed to return to its all-time highs (well over $100 a share) in the late 2000s. * 10 Stocks to Sell in Market-Cursed September The economic upturn brought U.S. Steel back to profitability, but investors are wary of the company's future. As a result, shares trade at a low valuation.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIs X stock a value play? Or is the company your classic value trap? Let's take a closer look at U.S. Steel stock and see if shares are an opportunity. A Closer Look at X StockOver the past few years, U.S. Steel stock has returned to profitability. A booming economy drove revenue up from $10.3 billion in 2016 to $14.2 billion in 2018. As a result, the X stock price was as high as $38.89 per share in July 2018.But steel prices have been in decline since May 2018. A decrease in demand has been matched with a rise in iron ore prices. U.S. Steel's financial performance reflects this decreased demand. Net earnings for the quarter ending June 30, 2019 were $68 million. This is down from $214 million in the prior year's quarter. Adjusted quarterly EBITDA has fallen from $451 million in Q2 2018 to $278 million in Q2 2019.This performance decline could just be the beginning. The U.S.-China trade war adds additional risks to the X stock price. One would think that a 25% tariff on steel imports would buoy the domestic steel industry, but it has had the opposite effect. In response to the tariffs, the domestic steel industry ramped up production. Falling demand made profitability tougher, though producers such as Nucor (NYSE:NUE) can handle the pricing pressures. While Nucor operates lower-cost electric-arc furnaces (EAFs), legacy steel producers such as U.S. Steel struggle as their blast furnaces are expensive to operate.But the company has a plan in motion. U.S. Steel's Asset Revitalization Plan (ARP) will reduce the company's cost structure. The company invested $1.6 billion into three modernization projects. These projects could improve EBITDA by $390 million a year once complete.Is this enough to counter weak macroeconomic trends and domestic competition? Are investors currently compensated for these risks? Let's take a look at the valuation of U.S. Steel stock. U.S. Steel Stock Sells at a Fire Sale PriceCompared to its domestic peers, U.S. Steel stock is undervalued. The company's forward price/earnings (forward P/E) ratio of 21.5 is not lower than its peers AK Steel (NYSE:AKS) and Nucor. But on an enterprise value/EBITDA (EV/EBITDA) and a price/tangible book basis, shares are a bargain. U.S. Steel stock trades at an EV/EBITDA ratio of 3.24. Its Price/Tangible book value is 0.5. This means investors can buy the company for half the value of its assets. Here are the valuation metrics for AK Steel and Nucor:AK Steel: Forward P/E of 12.3, EV/EBITDA of 4.9, Price/Tangible Book of 6.05Nucor: Forward P/E of 11.3, EV/EBITDA of 4.8, Price/Tangible Book of 1.53The discount AKS and NUE could be justified. U.S. Steel's legacy mills are more capital-intensive than Nucor's mini-mills. But AK Steel is a legacy steel producer. This could mean the X stock price is undervalued. It could also indicate that AKS is overvalued and that the market is right on the money with U.S. Steel stock valuation.The price/tangible book value of X stock could also be misleading. It is not as if U.S. Steel could liquidate its steel mills and distribute the proceeds to shareholders. It could indicate that X stock is well-capitalized enough to survive a recession.As indicated in the Aug. 1 earnings call slides (referenced above), U.S. Steel's next significant debt maturity is not until 2025. X stock likely has the flexibility to ride out the upcoming recession. In the meantime, they can continue to modernize operations. This would bring the company's cost-structure closer to that of peers such as Nucor. Too Early to Dive in on X StockU.S. Steel stock is undervalued, but it may be too early to dive in and take a position. An anticipated recession has yet to make impact. Once it hits, there are likely further declines in the X stock price. But long-term, U.S. Steel may not be the dinosaur investor perception implies. They have the flexibility to further modernize their operations.However, the domestic steel industry remains a tough place to invest. Commodity prices, trade policy, and economic cycles dominate the sector's destiny. With U.S. Steel stock, it truly is a case of "it's darkest before dawn."While the sun has definitely set on the stock, the clock hasn't even struck midnight yet. Take your time with X stock. There may be a strong buying opportunity around the corner.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Wait for a Recession to Hit Before Buying U.S. Steel Stock appeared first on InvestorPlace.
AK Steel (AKS) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
US steel stocks have been strong in September amid the trade war de-escalation. U.S. Steel and AK Steel are up 4.8% and 6.0%, respectively, this month.
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...