|Bid||58.13 x 800|
|Ask||58.50 x 2200|
|Day's Range||58.17 - 59.31|
|52 Week Range||49.79 - 68.84|
|Beta (3Y Monthly)||1.69|
|PE Ratio (TTM)||7.95|
|Earnings Date||Apr 17, 2019 - Apr 22, 2019|
|Forward Dividend & Yield||1.60 (2.73%)|
|1y Target Est||67.95|
Shares of Steel Dynamics Inc. slipped 0.3% in premarket trade Monday, after the steel producer indicated first-quarter earnings would decline from a year ago, compared with expectations of an increase, citing lower earnings from its sheet operations. The company expects EPS of 88 cents to 92 cents, down from 96 cents a year ago, and compared with the FactSet EPS consensus was $1.06. Steel Dynamics said, however, that recent increases in sheet steel prices are having a positive impact on results. Steel Dynamics' earnings outlook comes after fellow steel producer Nucor Corp. provided a downbeat earnings outlook on Friday, but said it believed sheet pricing "reached a low point" during the quarter. Steel Dynamics' stock, which fell 3.8% on Friday, has rallied 17% year to date while the S&P 500 has gained 13%.
Making steel is complicated. Profits are volatile. So one analyst has an idea for improving U.S. Steel’s long-term profitability.
Steel giant Nucor guided low on Q1 earnings Friday due to lower prices and margins in the sheet mill group.
Shares of Nucor were up 34 cents at $59.15 in early trading on the New York Stock Exchange. In a statement released before the market open on Friday, Nucor said it now expects first-quarter earnings in the range of $1.45 to $1.50 a diluted share, down from fourth-quarter 2018 earnings of $2.07 a diluted share. "We expect earnings of the steel mills segment in the first quarter of 2019 to decrease from the fourth quarter of 2018 due primarily to lower average selling prices and margins in our sheet mill group," the company said in the statement.
No.1 U.S. steel producer Nucor Corp on Friday forecast first-quarter profit below Wall Street estimates, citing lower average selling prices of steel sheets and delay in shipments to customers in the construction sector. The tariffs imposed by the Trump administration on steel imports, mainly from China, have increased domestic production, leading to a drop in steel prices. Nucor, which makes and distributes steel sheet, beam blank and steel bar for a wide range of industries, blamed an unusual wet winter season for the shipment delays from its steel mills and steel products units.
Shares of Nucor Corp. sank 1.8% in premarket trade Friday, after the steel maker provided a first-quarter profit outlook that was below expectations. The company said it expects EPS for the quarter ending March 30 to rise to $1.45 to $1.50 from $1.10 a year ago, but fall from $2.07 in the sequential fourth quarter, but that is below the FactSet EPS consensus of $1.62. Nucor said the decline from the fourth quarter is due primarily to lower average selling prices and margins in its sheet mill group, and amid shipment delays to construction customers because of an "unusually wet winter season." Nucor said, however, that it believes sheet pricing "reached the low point" during the first quarter, and is "encouraged" by recent price increases. The stock has declined 11.1% over the past 12 months through Thursday, while the SPDR Materials Select Sector ETF has lost 6.8% and the S&P 500 has gained 2.2%.
Nucor expects first quarter earnings to be in the range of $1.45 to $1.50 per diluted share. This range is a decrease compared to fourth quarter of 2018 earnings of $2.07 per diluted share and an increase relative to first quarter of 2018 earnings of $1.10 per diluted share. Included in the first quarter of 2018 results was an expense of $21.8 million, or $0.07 per diluted share, related to the write off of deferred tax assets due to the change in the tax status of a subsidiary.
How to Play AK Steel amid High Volatility(Continued from Prior Part)AK Steel In this series, we’ve looked at some of the challenges facing AK Steel (AKS), as well as some of its drivers. However, we need to understand a couple of things. First, the
How to Play AK Steel amid High Volatility(Continued from Prior Part)AK SteelAs noted previously, AK Steel (AKS) stock is more volatile than the broader steel space. In this article, we’ll look at some of AK Steel’s challenges.Stagnant auto
How to Play AK Steel amid High VolatilityAK Steel AK Steel (AKS) is among the most volatile steel stocks, with a three-year beta of 3.2x. Although steel and the broader metals and mining space (XME) have never been known for low volatility, AK Steel
President Trump’s Section 232 Tariffs Could Face a Big TestPresident TrumpOver a year ago, President Trump announced the Section 232 tariffs on US steel and aluminum imports. Canada, Mexico, and the European Union were temporarily exempt from the
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)ArcelorMittalFor ArcelorMittal (MT), among the analysts polled by Thomas Reuters on March 8, eight recommended a “strong buy,” eight recommended a
The tariff wars may end up serving a good purpose for the U.S. over the long run, but meanwhile, it reeks havoc on the stock market. We saw how the headlines crippled last year's rally. The effects were more more true in certain sectors like industrials and materials, and U.S. Steel (NYSE:X) stock is directly in the line of fire. Materials like steel are an easy target for nations to use as negotiating tactics. It's easy to levy a special tariff on steel and it has an extreme impact on all companies that deal with it on both sides of the fight.Source: Shutterstock As a result, last year was very difficult for X stock price. Even when the markets rallied in early 2018 X struggled. The pain continued all year, leading to 52-week lows on Christmas Eve. Luckily, the stock market has had a sharp snap back rally. Even U.S. Steel stock is up 9% year to date. This is even after the selling pressure we saw in stocks last week. However it's not all good news for X stock. Since it's February highs, X has drifted down 20% and close to its December lows. Meanwhile, the S&P 500 is a mere 5% off all-time highs.X stock rallied hard on Monday, but that was on the back of an incredible rally in general equities. Investor fears from last week's selling disappeared fast. So I still don't trust a one-day rally in X. The stock is down more than 50% in 12 months, so I need more proof that it's done falling.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis is not a judgement of U.S. Steel itself or its efforts, but there are clearly outside factors hindering the success of X stock. So even if it's merely a broken stock not a broken company, I'd rather risk my money elsewhere until this downside-trend ends.Valuation of X is not the problem. Last year, I thought it was cheap at 11x trailing P/E, and it got even cheaper. X is the perfect value trap. It's now trading at 3 trailing P/E and still not attractive enough to own. Clearly, there are outside forces at play. Trading X StockTechnically, there is nothing urgent about owning the stock at this point in time. I believe that it needs an event in order to trigger a rally. There needs to be a clear bottoming pattern before the chart gets tight enough to cause a recovery spike that can last. Otherwise, the descending channel of lower highs and lower lows will continue. As soon as the bulls in X stock are able to breach the trend line then we can establish upside targets. Until then, the bears in it will continue to sell the rips.X is stuck in a nasty selling pattern. The weekly chart shows that it's approaching a bottom from September of 2016. While this could lend support, it is also a risk. IF X fails to hold in the $15.80 zone, then it could invite more momentum sellers on a bearish pattern that targets another leg lower to retest $12.50. This is not a forecast but it is a possibility.Shorter term, the bounce in X now brings it into contention for a level that has been a pivot since early January. These tend to be temporary resistance on the way up. So the bulls have some work to do this week to rise above $21 per share. If this happens then it brings X stock closer to another test of the upper limit of the selling channel. But even then, there is residual resistance around $22 from the December price action. Meanwhile, X stock cannot lose $19 per share as it will create another major setback in the bullish efforts. The Bottom Line for X StockIn summary, U.S. Steel has value on its side but there's no obvious imminent breakout brewing. The bulls continue to work hard, but without a sustained rally, I'm not a buyer of X stock.Not every descending channel is an obvious breakout opportunity. Some trends can last a long time. And this downside trend exists inside a very bullish market-wide rally, so it's counterproductive to own X stock here. I'd rather join an upward moving ticker. I don't want to fight the tape even if I think I am right. * The 10 Best Stocks to Buy for the Bull Market's Anniversary U.S. Steel is clearly a broken stock. The company has value but the selling is relentless. The tape tells me to wait it out.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy Under 15x Earnings * 7 Dark Horse Stocks That Deserve Your Attention in 2019 * 5 Disruptive Technologies That Are Moving Too Fast Compare Brokers The post X Stock Is Off Its Lows, But the Trend Is Not Your Friend appeared first on InvestorPlace.
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)U.S. Steel As we discussed in the previous part, U.S. Steel (X) has fallen almost 20% from its 2019 highs. Other steel and iron ore names including AK Steel
Nucor Corp NYSE:NUEView full report here! Summary * Perception of the company's creditworthiness is neutral * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for NUE with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting NUE. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold NUE had net inflows of $2.80 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Basic Materialsis falling. The rate of decline is significant relative to the trend shown over the past year. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. NUE credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)U.S. SteelFor U.S. Steel (X), among the 12 analysts polled by Thomas Reuters on March 8, two recommended a “strong buy,” three recommended a “buy,” and
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)Tariffs For AK Steel (AKS), among the analysts surveyed by Reuters on March 8, two recommended a “buy,” ten recommended a “hold,” and three recommended a
Is Cleveland-Cliffs the Best Bet to Play the US Steel Sector?(Continued from Prior Part)Cleveland-Cliffs’ valuation Among major US (SPY) steel stocks, Nucor (NUE) and AK Steel (AKS) have the highest multiples of 6.3x and 6.1x, respectively. In
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)Nucor For Nucor (NUE), among the analysts polled by Thomas Reuters on March 8, four recommended a “strong buy,” eight recommended a “buy,” and three
How Analysts View Steel Stocks a Year after Trump’s Tariffs(Continued from Prior Part)Steel Dynamics For Steel Dynamics (STLD), among the analysts polled by Thomas Reuters on March 8, three recommended a “strong buy,” seven recommended a
How Analysts View Steel Stocks a Year after Trump’s TariffsSteel stocksOn March 8, 2018, President Trump announced tariffs on US steel imports under Section 232 of the Trade Expansion Act of 1962. The tariffs became effective on March 23. There
Is Cleveland-Cliffs the Best Bet to Play the US Steel Sector?(Continued from Prior Part)Analysts’ recommendationsIn the past year, analysts’ sentiment for Cleveland-Cliffs (CLF) has improved. Compared to 58% “buy” recommendations currently,
Is Cleveland-Cliffs the Best Bet to Play the US Steel Sector?(Continued from Prior Part)Vale’s dam burst On January 25, a major disaster struck Vale (VALE) when a dam burst at one of its iron ore mine sites in Minas Gerais in Brazil (EWZ). At