|Bid||61.25 x 1000|
|Ask||66.21 x 800|
|Day's Range||64.00 - 64.83|
|52 Week Range||53.71 - 70.48|
|PE Ratio (TTM)||12.40|
|Forward Dividend & Yield||1.52 (2.35%)|
|1y Target Est||N/A|
China’s steel and aluminum overcapacity has earned it the ire of several countries. While formally, the country has a policy of curtailing its excess industrial capacity and has apparently taken some steps in that direction, it still has considerable overcapacity. Meanwhile, China’s Belt and Road Initiative was expected to help it tide over some of its industrial overcapacity by investing in infrastructure beyond its borders.
US steel stocks, including U.S. Steel Corporation (X) and Nucor (NUE), have whipsawed this year. At the beginning of the year, we saw some bullishness in the steel space on optimism over Section 232 tariffs. However, even as US steel prices surged to a decade high, investors stayed cold to steel stocks. Cleveland-Cliffs (CLF) has been an exception, rising 68.6% year-to-date based on its September 21 closing price.
Zacks.com featured highlights include: Steel Dynamics, Deckers, Nucor, CBRE and Huntington Ingalls
Jim Cramer said on CNBC's "Mad Money Lightning Round" bluebird bio Inc (NASDAQ: BLUE ) he likes the CAR-Ts. He emphasized that they're all speculative plays, but he likes them "very much." ...
As we saw previously in this series, US steel prices are hovering near a decade high. Higher steel prices haven’t been accompanied by a similar surge in raw material prices. As a result, some US steel companies such as Nucor (NUE) and Steel Dynamics (STLD) are posting record earnings. Their earnings have also improved, and workers want a piece of the pie. Let’s look at that in perspective.
Jim Cramer shares his take on callers' favorite stocks at lightning speed, including an oil play that's benefiting from the current market layout.
Six Months of Tariffs: Has US Steel Industry Bounced Back? The US steel industry has seen an increase in profitability this year as President Donald Trump’s Section 232 tariffs have raised US steel prices (DIA). Nucor (NUE) and Steel Dynamics (STLD) posted record earnings in the second quarter, and earnings are expected to rise even more in the third quarter.
US steel prices have risen sharply this year as President Trump clamped down on imports by imposing a 25% tariff under Section 232 of the Trade Expansion Act of 1962. US steel prices have skyrocketed, but globally, there hasn’t been a similar uptick in prices. The net result is that the spreads between US and international steel prices widened to record highs.
Section 232 tariffs came into effect on March 23, 2018. It’s been six months, so it’s a good time to see how they’ve impacted the US steel industry. When the tariffs were first announced, there were no exemptions on a country level. However, even before the tariffs came into effect, we saw exemptions for several regions, including NAFTA (North American Free Trade Agreement) companies and the European Union.
China (FXI) became the world’s second-largest economy due to strong economic growth in the last few decades. The country saw double-digit growth a few years ago due to massive infrastructure investments and a rapidly growing export sector. According to Trading Economics, China’s economic growth averaged 9.61% between 1989 and 2018. However, the country’s economic growth has cooled off. China’s economic growth increased at an annualized pace of 6.7% in the second quarter. The US economy (SPY) grew 4.2% in the second quarter.
While they are a usually controversial subject, stock buybacks have nonetheless made a huge impact this year. According to a CNBC report last month, companies will likely purchase $1 trillion worth of their own equity. Understandably, this trend has Wall Street considering the pros and cons.
President Trump’s tariffs could cause US manufacturers to shuffle their supply chains. We could see some import substitution like we saw in the steel industry. However, we might also see import replacement from other emerging markets as US tariffs lead to higher landed costs for Chinese goods. Import replacement might not be as easy as it sounds. China is the dominant if not the sole supplier for many goods that it exports to the US. ...
What a company does during industry upturns isn't what makes it great, it's how it handles downturns that's the real differentiator.
AK Steel (AKS) has gained more than 15% from its 2018 lows. U.S. Steel Corporation (X) has lost 15.3% YTD. Nucor (NUE) and Cleveland-Cliffs (CLF) have gained 2.3% and 69.2% YTD, respectively, based on the closing prices on September 18.
So far in this series, we’ve discussed Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel Corporation’s (X) third-quarter earnings guidance. In this part, we’ll see how things look for AK Steel (AKS) in the third quarter and beyond. AK Steel has underperformed the broader steel space (XME) in 2018. The stock saw a selling spree after its first and second-quarter earnings release. In the second quarter, AK Steel missed the consensus estimates and its third-quarter guidance also spooked the markets. Let’s see what analysts project for the company’s third-quarter earnings.
U.S. Steel Corporation (X) is having a dismal run in 2018. The stock has lost 15.3% year-to-date based on the closing prices on September 18. AK Steel (AKS) has lost 17.3% YTD, while Nucor (NUE) has risen 2.3%. Cleveland-Cliffs (CLF) has outperformed US steel stocks (XME) in 2018 with gains of 69.2%. Let’s see what could drive U.S. Steel Corporation’s performance in 2019.
While the steel industry faces risks from escalating trade tensions, it is gaining from favorable demand and pricing fundamentals.
Nucor (NUE), the largest US-based steel producer, posted its highest second-quarter earnings ever in the second quarter of 2018. Steel Dynamics (STLD) also posted record earnings in the second quarter. The Section 232 tariffs lifted US steel prices to multiyear highs. ArcelorMittal (MT) only gets a quarter of its revenues from NAFTA. ArcelorMittal also posted its highest earnings in seven years. However, U.S. Steel Corporation (X) and AK Steel’s (AKS) earnings have lagged other steel companies in 2018.
Previously in this series, we discussed Nucor (NUE) and Steel Dynamics’ (STLD) third-quarter earnings guidance. In this part, we’ll discuss U.S. Steel Corporation’s (X) third-quarter earnings estimates compared to the company’s guidance.
Last week, Nucor (NUE), the largest US-based steel producer, released its third-quarter guidance. The company expects to post an EPS of $2.35–$2.40 in the quarter. Nucor posted an EPS of $2.13 in the second quarter and $0.79 in the third quarter of 2017. Nucor’s third-quarter earnings guidance was in line with analysts’ estimates. Previously, Nucor posted better-than-expected guidance in the second quarter.
Now, we’re approaching the end of the third quarter. Nucor (NUE) released its third-quarter earnings guidance on September 14, while Steel Dynamics (STLD) released its earnings guidance on September 17. In this series, we’ll discuss Nucor and Steel Dynamics’ third-quarter guidance. We’ll also analyze the third-quarter guidance provided by other steel companies during their second-quarter earnings call. We’ll discuss steel companies’ outlook.
Nucor (NUE) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well.