|Bid||2.80 x 900|
|Ask||2.88 x 2900|
|Day's Range||2.8200 - 3.0300|
|52 Week Range||2.8200 - 6.8000|
|Beta (3Y Monthly)||2.77|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 28, 2019 - Feb 1, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.83|
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US steel stocks are in the red today, following the broader markets (DIA) lower. Looking at the leading steel names, U.S. Steel Corporation (X) and AK Steel (AKS) are trading at falls of 2.3% and 2.7%, respectively, as of 2:05 PM EST. Yesterday, in an interview, U.S. Steel’s CEO, David Burritt, praised President Donald Trump’s economic policies.
AK Steel (AKS) is the worst-performing steel stock among the steel companies that we’re covering in this series. The stock has lost 45.4% year-to-date based on its closing price on December 4. U.S. Steel Corporation (X) and ArcelorMittal (MT) have lost 35.8% and 29.3% during the same period. Cleveland-Cliffs (CLF) has outperformed US steel producers by a wide margin in 2018.
Among the analysts polled by Thomas Reuters on December 5, three analysts recommended a “strong buy” for Steel Dynamics (STLD), seven recommended a “buy,” and four recommended a “hold.”
Among the analysts polled by Thomas Reuters on December 5, four analysts recommended a “strong buy” for Nucor (NUE), seven recommended a “buy,” and four recommended a “hold” or some equivalent.
Equity markets have seen significant volatility in the last few weeks. November started on a weak note for markets. Broader market indices (SPY) turned negative for the year during November. However, markets rallied in the last week of November due to optimism about US-China trade talks.
Could Battered Steel Stocks Witness a Santa Claus Rally? In this part, we’ll see whether steel stocks (XME) offer value after the recent sell-off. Steel prices have fallen from their peak and could soften more looking at the weakness in Chinese steel prices.
As we noted previously, US steel stocks have fallen in 2018 despite the higher earnings. Companies like U.S. Steel Corporation (X) and AK Steel (AKS) are trading with massive losses in 2018. Nucor (NUE) and Steel Dynamics (STLD) are also in the red. While steel stocks’ valuation looks low, there are some valid reasons behind investors’ dislike for steel stocks.
Steel stocks have seen a selling spree in 2018, which we discussed in the previous part. From a fundamental perspective, steel companies’ earnings have been strong. Since there has been a disconnect between steel companies’ earnings and price action, the valuation multiples have started to look attractive.
Shares of Steel Dynamics, U.S. Steel, AK Steel, and Olympic Steel hit 52-week lows last week despite strong earnings. Insiders are buying up stock while it’s cheap.
Steel prices are the key driver of steel companies’ earnings. US steel prices rose sharply in 2018. The benchmark HRC (hot-rolled coil) rose to the highest level in a decade. However, the rise in some of the other steel grades like CRC (cold-rolled coil) was lower.
Could Battered Steel Stocks Witness a Santa Claus Rally? As we noted in the previous part, steel stocks like U.S. Steel Corporation (X) and AK Steel (AKS) are trading with massive year-to-date losses. Other steel stocks like Nucor (NUE) and Steel Dynamics (STLD) are also in the red.
US steel stocks are having a dismal year. U.S. Steel Corporation (X) and AK Steel (AKS) have lost 34% and 46% based on their closing prices on November 30. Nucor (NUE) and ArcelorMittal have also seen negative price action in 2018.
As we noted previously, steel stocks saw a selling spree in November. U.S. Steel Corporation (X) and Steel Dynamics (STLD) fell to their 52-week lows during the month. AK Steel (AKS) fell to its 52-week low in November. AK Steel has fallen almost 46% in 2018 based on its closing prices on November 30. In this part, we’ll discuss whether AK Steel represents a buying opportunity.
AK Steel (AKS) closed at $3.08 on November 30—its 52-week low closing price. All of the steel stocks fell in November. AK Steel was among the biggest losses. AK Steel saw a negative price action of 16.7% in November. U.S. Steel Corporation (X) fell 13.0%, while Cleveland-Cliffs (CLF) fell 13.7%. In this part, we’ll see what spooked AK Steel investors in November.
US steel stocks, which have sagged in 2018 despite trade protection from President Trump, were dismal in November. U.S. Steel Corporation (X) fell 13.0% in November, which took its YTD (year-to-date) losses to 34.0%. Nucor (NUE), AK Steel (AKS), and ArcelorMittal (MT) are also in the red in 2018. However, Cleveland-Cliffs (CLF), which supplies iron ore to US steel companies, has risen 28.7% YTD based on its closing prices on November 30. So, what impacted U.S. Steel Corporation in November?
According to data from the American Iron and Steel Institute, US steel production rose 11.6% year-over-year in the week that ended on November 24. On a year-to-date basis, US steel production has risen 5.6% compared to the same period in 2017. The steel industry’s capacity utilization rates have also improved and are over 80%, something the US Commerce Department was targeting with the Section 232 tariffs.
According to the preliminary data released by the US Census Bureau, the country imported 2.96 million metric tons of steel in October. Firstly, the sharp sequential rise in imports has a low basis of comparison, as US steel imports slumped to multiyear lows in September. Furthermore, in the first ten months of 2018, US steel imports fell 10.4% compared to the corresponding period last year.
US steel stocks U.S. Steel Corporation (X), AK Steel (AKS), and Steel Dynamics (STLD) fell to their 52-week lows on November 27. Cleveland-Cliffs (CLF) was an exception and closed with a gain on the day, as it announced a share buyback.
The stock market soared Wednesday with the Dow Jones Industrial Average posting its fifth-biggest point gain ever.