|Bid||34.25 x 800|
|Ask||34.65 x 3200|
|Day's Range||33.59 - 34.55|
|52 Week Range||28.91 - 52.10|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||6.30|
|Forward Dividend & Yield||0.75 (2.23%)|
|1y Target Est||N/A|
Judging by the stock prices of metal producers, you could be mistaken for thinking he’s trying to destroy the industry instead. The aggregate market capitalization of the seven major U.S. primary steel and aluminum producers — Nucor Corp., U.S. Steel Corp., AK Steel Holding Corp., Steel Dynamics Inc., Commercial Metals Co., Alcoa Corp. and Century Aluminum Co. — is now down about one-third since Jan. 11 last year.
Can Cleveland-Cliffs Stock Continue Outperforming Peers in 2019?US steel stocks surge after a tough year US steel stocks had a weak 2018 despite the Trump administration’s tariffs on imported steel products. However, after a rough 2018, US steel
After Steel Dynamics, Inc.'s (NASDAQ:STLD) recent earnings announcement in September 2018, analyst forecasts seem pessimistic, with profits predicted to drop by -14% next year compared with the past 5-year average Read More...
US Steel Stocks: Analysts' Expectations in 2019(Continued from Prior Part)Analysts could be right AK Steel (AKS) is scheduled to release its fourth-quarter earnings on January 28 after the markets close. The company would hold its earnings call the
US Steel Stocks: Analysts' Expectations in 2019(Continued from Prior Part)NucorSteel Dynamics (STLD) is scheduled to release its fourth-quarter earnings on January 22. Nucor (NUE), the largest US-based steel producer, is scheduled to release its
US Steel Stocks: Analysts' Expectations in 2019Analysts Overall, 2018 was nothing short of a nightmare for US steel stocks. U.S. Steel Corporation (X) and AK Steel (AKS) fell 48.2% and 60.2%, respectively. Nucor (NUE) fell 18.5%, while
Steel Dynamics (STLD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
CLF: Why Jim Cramer Is Worried about This 'Best-in-Show' Stock ## Jim Cramer: CLF is ‘Best-in-Show’ company Yesterday, Jim Cramer, the Mad Money host, answered caller’s questions regarding Cleveland-Cliffs (CLF) stock. He said, “The company’s best in show, but I’ve got to tell you, the stock is not going to be a good stock if the Fed tightens again. I don’t think they’re going to in the near future, but I’ve got to tell you, it makes me nervous.” ## Fed’s rate hike chances bleak On January 4, Fed Chair Jerome Powell said that the Fed could be more patient with its policy stance if needed. Yesterday, he again stressed that the Fed could be patient while approving further hikes, as it continues to monitor the gauges of the US economy (SPY). These two back-to-back appearances from the Fed chair with dovish statements have assured markets that the Fed will not take any surprise action on rate hikes. The markets have been quite relieved with this stance from the Fed as well as from the recently concluded US-China trade talks. ## Cleveland-Cliffs’ fundamentals While Cleveland-Cliffs stock rose by 6.7% in 2018, it plunged 39% in the last quarter alone. This, however, had more to do with the overall risk-off sentiment and the slowdown concerns of China rather than anything related to CLF itself. As compared to CLF’s positive price action, its US peers (DIA) (IVV), AK Steel (AKS), U.S. Steel (X), ArcelorMittal (MT), Steel Dynamics (STLD), and Nucor (NUE) reported returns of -60%, -48%, -36%, -30%, and -18%, respectively, for 2018. Cleveland-Cliffs’ fundamentals have been improving since its new management took over in 2014. Its non-core assets have sold off with the seaborne operations being the last, which took a lot of volatility out of the stock. Its debt concerns have been laid to rest. Moreover, the company is solidly marching on its growth path with the ongoing construction of an HBI (hot briquetted iron) plant. As we argued in Why Now Might Be a Good Time to Look Again at Cleveland-Cliffs, CLF is attractively valued based on its multiple relative to its peers and its historical valuation. See Revisiting the Case: How Does Cleveland-Cliffs Look Now? for an in-depth analysis of CLF’s fundamentals and valuations.
Steel Companies’ 2019 Outlook: Can the Winning Streak Continue? (Continued from Prior Part) ## Steel oversupply Some observers have pointed out that US steel markets could witness oversupply that could depress prices. To be sure, we saw a plant restart by U.S. Steel (X) last year. Nucor (NUE) and Steel Dynamics (STLD) have announced a slew of new projects that would add to US steel production capacity. But are US steel markets staring at an oversupply situation? Let’s discuss this in perspective. ## Section 232 tariffs To be sure, US steel production has been on an uptrend after President Trump imposed Section 232 tariffs in March. Last year, US steel production rose 6.2% year-over-year. In absolute terms, US steel production rose ~5.5 million tons. The calculations are based on the American Iron and Steel Institute’s weekly steel production data until December 29. Meanwhile, while US steel production has risen, it has been accompanied by falling imports. According to the Census Bureau’s final data, US steel imports fell by 3.2 million tons in the first nine months of 2018 as compared to the corresponding period in 2017. Preliminary data showed a small rise in October imports. Imports likely fell in November and December as well. However, the November steel imports data is yet to be published due to the government shutdown. Nonetheless, as of now, higher steel production doesn’t seem to be a problem for US steel markets (AKS), as it’s leading to import substitution. However, if the Section 232 tariff is watered down, we could see an increase in imports. We’ll discuss this in detail in the next article. Continue to Next Part Browse this series on Market Realist: * Part 1 - Steel Companies’ 2019 Outlook: Can the Winning Streak Continue? * Part 2 - Are We Seeing a Typical Dead Cat Bounce from Steel Stocks? * Part 3 - What Should US Steel Investors Watch Out for in 2019?
President Trump wants to secure our southern border using structures made of steel. The stock is in bear market territory 24.2% below its Jan. 12, 2018 high of $70.48. The stock is in bear market territory, 25.7% below its May 31, 2018 high of $97.41.
December was a very bad month for U.S. steelmakers, even though the good times aren't over just yet.
Steel prices in the US have dropped below their levels before President Donald Trump announced new tariffs on imports last year, as world markets have responded to concerns about a slowdown in demand in China. S&P Global Platts benchmark price for hot-rolled steel coil has dropped from a peak of $920 a short ton last July to about $725 a short ton at the end of last week, a fall of 21 per cent. The decline in prices is putting pressure on the US steelmakers that Mr Trump has been trying to help with his tariff strategy, with mixed results.
It's admittedly a paradox. Although United States Steel (NYSE:X) is on the verge of logging its best full-year revenue since 2014 and its most profitable year since 2008, X stock itself just came up and off multi-year lows after falling more 60% from its March peak. The explanation for the mismatched trends isn't terribly tough to come up with. Fear about the impact of new tariffs on steel imported into the United States -- mostly fear of the unknown -- drove U.S. Steel stock along with peers like AK Steel (NYSE:AKS) and Century Aluminum (NASDAQ:CENX) sharply lower. But, by and large, those tariffs created their intended result. That is, U.S.-based providers like AK Steel and U.S. Steel have enjoyed more pricing power without facing a demand headwind. The economy remains rather robust, even if the auto-making industry has cooled. To that end, one overarching question surfaces … if what should have been bullish for U.S. Steel stock was actually bearish, might what is arguably supposed to be bearish end up serving as a tailwind for X stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### More Good Than Harm Only in retrospect has it become evident that too many investors were looking at the matter through a one-dimensional (and probably a politically charged) lens. * 10 Oversold Stocks Due for a Bounce Certainly a shakeup of how the nation conducts business with China, its most important trade partner, primarily by the hand of polarizing President Donald Trump was an uncomfortable development for some. Although most everyone agrees the heavy tariffs China imposes on U.S. goods sold in China are less than fair, not everyone agreed now was the right time to push back. Trump pushed back anyway. The end result thus far hasn't given critics much to complain about. Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) are both expected to report record annual earnings once their fourth-quarter numbers are posted. Although generally closer to the beginning of the supply chain than Nucor and Steel Dynamics, AK Steel and U.S. Steel aren't having bad years either. U.S. Steel, for instance, is on pace to beef up its top line by nearly 17% for fiscal 2018, driving a huge profit increase. Both are expected to continue improving through next year, even at a more moderated pace. That's because prices for raw steel and finished steel products are firm, and demand isn't yet abating … with the 'and' being the operative word of that explanation. Prices for hot-rolled steel sheets are up nearly 70% since their January low, and remain within reach of the multi-year high hit in September despite falling roughly 20% in the meantime. Noteworthy is that prices for China's still fell to a similar degree at the same time, suggesting the country most targeted by 2018's import tariffs is finally starting to feel a pinch. And, as of October, the World Steel Association predicted 2018's consumption of steel would roll in 3.9% higher than 2017's tally, and then grow another 1.4% in 2019. Moreover, that outlook was offered before prices broadly fell, which may in fact facilitate even more consumption provided the global economy sidesteps a recession. ### Looking Ahead for X Stock Fast-forward to this week. Although it will be a far-from-finalized end to the tariff war, this week, representatives from China and the United States are meeting to discuss trade. China, undeniably feeling the impact of new tariffs more than U.S. companies are -- despite their lamentations -- is likely ready to deal. What that may mean for companies like Century Aluminum and U.S. Steel isn't clear. Realistically speaking, Trump will secure some, but not all, of the concessions he'd like to see take shape. That will make China's steel more competitively priced again, but also stands to rev the global economy's engine again as well. * 7 Stocks to Buy Down 20% in December That's the rub for investors … determining where the optimal balance between protectionism and hands-off policies apply. The initial assumptions were clearly largely wrong. The tariffs gave U.S. steel and material companies the pricing power they've craved without quelling the economy … at least not yet. In that same vein, one can't help but wonder if a palatable end to the tariff war (the end so many investors say they want) could actually do more harm than good to metals stocks. Then again, the facts of the matter haven't been terribly relevant. Most of these names have been walloped on what have been erroneous assumptions. There's no reason that can't rebound on equally erroneous but opposite assumptions. Or, perhaps with X stock trading at only 5.5 times its trailing earnings and less than 4 times its forward-looking profits, shares are in a position to rebound no matter what lies ahead. Or maybe, just maybe, U.S. Steel's bottom line has far less to do with tariffs and far more to do with the economy than most investors are able to believe. After all, roughly 75% of the requests steel importers made to exclude their foreign steel purchases from 2018's new tariffs were granted by government regulators. The United States' steel companies have been doing just fine anyway. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post Surprise! U.S. Steel Isn't as Vulnerable to Tariffs as Feared. appeared first on InvestorPlace.
In November, steel stocks fell on over-expansion fears. One Steel CEO has been fielding these fears for a while and dismissing them. Here's why.
Steel Dynamics (STLD) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Mark Millett has been the CEO of Steel Dynamics, Inc. (NASDAQ:STLD) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then Read More...
The Section 232 tariffs lifted US steel prices to multi-year highs, and benchmark HRC (hot rolled coil) prices rose to their highest level since 2008. Plus, since there wasn’t a similar surge in steelmaking raw material prices, US steel companies’ margins expanded.
Why Now Might Be a Good Time to Look Again at Cleveland Cliffs(Continued from Prior Part)Analyst sentiment Cleveland-Cliffs (CLF) stock has seen a turn in fortunes, as far as analyst sentiment is concerned, since March.
Among US (SPY) steel stocks (XME), U.S. Steel Corporation (X) and ArcelorMittal (MT) are trading at the lowest forward EV-to-EBITDA multiples of 2.5x and 3.5x, respectively. Cleveland-Cliffs (CLF), on the other hand, is trading at the highest multiple of 5.3x. Nucor (NUE) and Steel Dynamics (STLD) follow with multiples of 5.2x and 4.4x, respectively.
As we saw in the previous part of this series, all the major US (SPY) steelmakers are in the red for the year despite increasing protectionism from the Trump administration. As steel imports have declined considerably after tariffs hit imports, the concerns of oversupply in the domestic market have risen. All the stocks were down after Steel Dynamics (STLD) announced a new electric arc furnace at the end of November.
US steel stocks have had a weak 2018 despite the Trump administration’s tariffs on imported steel products. Investors don’t seem to be turning to steel stocks despite the protection they enjoy from higher tariffs. Most steel stocks are trading with year-to-date (or YTD) declines. AK Steel (AKS) tops the list with a YTD decline of 57% as of December 20. U.S. Steel (X), ArcelorMittal (MT), Steel Dynamics (STLD), and Nucor (NUE) follow with declines of 47%, 34%, 30%, and 19%, respectively.
The Zacks Analyst Blog Highlights: Schnitzer, United States Steel, Nucor, Steel Dynamics and POSCO