|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||38.30 - 38.73|
|52 Week Range||27.86 - 39.45|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
Among the miners we’re discussing in this series, Vale SA (VALE) has the highest percentage of “buy” ratings at 65.2%. Many factors have contributed to the positive shift in the overall sentiment for Vale. The stock’s target price has risen 71% in the last year due to the positive turnaround of the company’s fundamentals. Vale’s peers (XME) Rio Tinto (RIO) (TRQ) and BHP Billiton (BHP) haven’t seen such growth in their target prices.
The majority of ratings for BHP Billiton (BHP) are “buys,” with 61% of analysts recommending as much on the stock. The consensus target price for BHP is $30.0, which implies a potential downside of -3.1% based on its current market price. BHP’s most recent rating change came from JPMorgan Chase (JPM), which upgraded the stock from an “underweight” to a “neutral” on December 14, 2017.
Steel stocks are having a strong month. Based on January 12 closing prices, U.S. Steel Corporation (X) and AK Steel (AKS) have respectively gained 11.2% and 9.3% this month. Nucor (NUE) and Steel Dynamics (STLD) have also seen upward price action of 8.5% and 9.0% so far this month, respectively.
In this part of our series, we’ll see how markets are valuing Alcoa (AA). Specifically, we’ll look at the forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, which is the preferred valuation metric for metal and mining stocks. Alcoa is trading at 5.2x its 2018 consensus EBITDA and at 5.4x its consensus 2019 EBITDA.
The SPDR S&P Metals & Mining (ETF) (NYSEARCA:XME) is one of the strongest exchange-traded funds on the planet. Stocks entered the session already extended, and the S&P 500 gapped down on China bond worries. While the selling pressure lasted for thirty minutes in the S&P 500 before buyers fought back, it lasted all of one second in XME.
US Steel Industry’s 2018 Outlook: Can the Momentum Continue? In the previous part, we looked at the different factors that could deter the Trump administration from taking stringent action against steel imports. Although several economists have warned that import safeguards could do more harm than good, President Trump might not want to go back on a key electoral plank of protecting US manufacturing.
The “Job Openings and Labor Turnover Survey” (or JOLTS) data for November was reported on January 9 and contains information about job openings and total separations. Total separations include quits, layoffs and discharges, and other separations. As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in November.
While analyzing iron ore demand, it is vital to track Chinese demand, since it consumes more than half of the seaborne-traded iron ore (COMT). In this article, we’ll discuss iron ore imports and Chinese steel production to assess its future outlook. China imported 94.5 million tons of iron ore in November 2017, which is an increase of 2.8% year-over-year (or YoY) and 18.9% sequentially.
It's been a turbulent few years for the global mining industry, as Bernstein's Paul Gait and his team point out on Wednesday, but can 2018 be "the year of redemption" for the stocks? Gait writes that 2017 was a strong year for commodity prices, so much so that prices largely blew past analysts' expectations. More from his note: Finally, we show that despite upward revisions, consensus forecasts still imply an overlypessimistic vision of global mining profitability and global economic growth.
The looming Section 232 deadline is among the reasons Wall Street seems to be warming up to steel stocks such as U.S. Steel Corporation (X) and AK Steel (AKS).
The Federal Reserve released its November industrial production report on December 15, 2017. The report indicated that industrial production improved 0.2% in November.
Metal stocks are waking up. With inflation expectations ratcheting higher and the anticipation of further rate hikes, capital is flowing into late cycle stocks. Indeed, XME is fast approaching a new 52-week high.