|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||34.78 - 35.16|
|52 Week Range||29.68 - 39.62|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
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.
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.
As we discussed in the previous part, trade war concerns are a short-term risk for copper prices (XME). However, the long-term outlook seems positive given the supply-demand dynamics. Along with the macro scenario, Freeport-McMoRan (FCX) also faces uncertainty about its Grasberg operations. Although the company announced a non-binding head of agreement with the Indonesian government, it still needs to sign a definitive agreement and address the environmental claims made by the Indonesian government. In this part, we’ll discuss Freeport-McMoRan’s valuation given its risk-return trade-off.
Alcoa (AA), the leading US-based aluminum producer, is having a terrible year. Century Aluminum (CENX) has lost almost 40%, while Rio Tinto (RIO) has fallen 5.5%. Aluminum has seen a selling spree after prices hit multiyear highs in April after President Trump imposed sanctions on Russian aluminum producer RUSAL.
The US (IVV)(QQQ) employment data for August was released on September 7. After disappointing in July, the job additions in August rebounded to 201,000 compared to economists’ expectations of 191,000 and last month’s additions of 147,000.
In this article, we’ll look at some of the risks that the US steel industry faces towards the end of 2018. We’ll look at global as well as domestic challenges.
As we saw in the previous part, AK Steel’s (AKS) 2018 price action has lagged other steel companies, including U.S. Steel Corporation (X), Nucor (NUE), and ArcelorMittal (MT). Now let’s look at some of AK Steel’s near-term drivers.
Today, J.P. Morgan (JPM) upgraded Rio Tinto (RIO), believing that demand from China (FXI) should pick up over the coming months. It also believes that miners’ valuations are cheap compared to the same stages of previous cycles.
The number of analysts recommending a “buy” for Vale (VALE) has increased in the last few months. Currently, 73.0% of the analysts covering Vale stock recommend a “buy,” compared with 56.0% at the end of April. Approximately 23.0% of analysts recommend a “hold,” and 4.0% recommend a “sell.” Vale’s target price implies a 17.0% upside based on its current market price.
Of the 14 analysts covering Rio Tinto (RIO) stock, 57.0% recommend a “buy,” 29.0% recommend a “hold,” and 14.0% recommend a “sell.” One year ago, 80.0% of analysts recommended a “buy.”
Steel stocks U.S. Steel Corporation (X) and AK Steel (AKS) are trading at yearly losses. In this article, we’ll see what could be making markets bearish on U.S. Steel.
According to the consensus compiled by Thomson Reuters, 17 analysts cover BHP Billiton (BHP) stock. Of these analysts, 53.0% recommend a “buy,” 41.0% recommend a “hold,” and 6.0% recommend a “sell” for BHP stock.
In this article, we’ll look at Cleveland-Cliffs’ (CLF) valuation and compare it to those of its US steel peers (SLX). We’ll also look at its forward EV-to-EBITDA (enterprise value-to-EBITDA) and PE multiples.
Can Cleveland-Cliffs Continue Outperforming US Steel Stocks? The main factors driving this decision were the increasingly discounted prices of lower-content iron ore and the quality of the remaining iron ore reserves at its Asia-Pacific operations.
Copper prices rose sharply in 2016 and 2017, aiding copper companies’ profitabilities. However, as we noted earlier in this series, copper prices have been weak this year amid the US-China trade war scare.
US steel production is the key variable that drives US steelmakers’ (SLX) (XME) revenues. AK Steel (AKS) and ArcelorMittal (MT) are Cleveland-Cliffs’ (CLF) customers. Investors track production data to get a sense of the direction of overall volumes.
Former President George Bush imposed steel tariffs in 2002. In regards to Bush’s steel tariffs, President Trump said in an interview, “It didn’t work for Bush, but nothing worked for Bush.” In this article, we’ll look at the key differences between the steel tariffs imposed by Trump and Bush.
China consumes more than 70% of seaborne-traded iron ore, so it’s important for iron ore investors to track the country’s demand and outlook to gauge the overall outlook for iron ore. After dropping by 12% YoY (year-over-year) in June, China’s iron ore imports rose 4.2% YoY to 89.96 million tons in July, which is a rise of 8.0% sequentially.
The VanEck Vectors Steel ETF (SLX) is off 7.5% over the past month as steel and iron stocks have struggled amid tariffs and trade war speculation. After the March tariff on steel imports, the Trump administration expanded them on June 1 by removing temporary country exemptions for members of the European Union, Canada and Mexico. However, some analysts believe iron and steel equities are poised to bounce back. “First it was fear of tariffs and a trade war that hurt the metals and mining sector, and then Turkey's troubles burst onto the world stage, weighing on emerging markets. However, these worries have created a buying opportunity, argues Credit Suisse's Curt Woodworth,” reports Teresa Rivas for Barron's.
Metals and mining stocks have been battered in 2018, but fundamentals have remained robust, argues Credit Suisse. Where we were: Trade-war and emerging-market worries have dinged the sector, with the SPDR S&P Metals & Mining ETF (XME) down 8% since the start of the year. Where we're headed: Credit Suisse argues that fundamentals are still strong, given accelerating demand, which can offset macro worries. First it was fear of tariffs and a trade war that hurt the metals and mining sector, and then Turkey's troubles burst onto the world stage, weighing on emerging markets. However, these worries have created a buying opportunity, argues Credit Suisse's Curt Woodworth.
Although their 2018 price action doesn’t suggest it, US steel companies Nucor (NUE) and Steel Dynamics (STLD) posted record earnings in the second quarter on higher steel prices amid the Section 232 tariff protections.
Freeport-McMoRan (FCX) released its second-quarter earnings on July 25. The company posted revenues of $5.17 billion in the second quarter—compared to $3.71 billion in the second quarter of 2017 and $4.86 billion in the first quarter. Freeport-McMoRan’s second-quarter revenues were better than expected. The company posted an adjusted EBITDA of $2.1 billion in the second quarter—compared to $1.92 billion in the first quarter and $1.2 billion in the second quarter of 2017. Freeport-McMoRan’s second-quarter EBITDA also beat analysts’ estimates.
Steel companies sell steel either in the spot market or to contract customers. In contract pricing, several annual contracts roll over at the beginning of the year. As we noted previously, AK Steel’s (AKS) ASP (average selling price) growth has lagged other steel companies (CLF). The lag could be attributed to the higher percentage of contract sales in AK Steel’s product mix. Since most of the contracts rolled over before to the spike in steel prices, AK Steel couldn’t reap the full benefits from higher spot steel prices. ...
ArcelorMittal (MT), the world’s largest steel producer, released its second-quarter earnings on August 1. It reported revenues of $19.9 billion in the second quarter, compared to $19.2 billion in the first quarter.