|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||68.21 - 69.23|
|52-week range||51.67 - 70.48|
|PE ratio (TTM)||20.22|
|Earnings date||30 Jan 2018|
|Forward dividend & yield||1.52 (2.20%)|
|1y target est||70.31|
ArcelorMittal (MT), the world’s largest steel producer, outperformed its US-based peers including U.S. Steel Corporation (X) and AK Steel (AKS) last year. Based on the closing prices on January 17, ArcelorMittal has gained 13.5% year-to-date. ArcelorMittal (MT) has a “buy” or higher rating from 16 analysts.
Cleveland-Cliffs (CLF) achieved US volumes of ~5.9 million tons in 3Q17, an increase of 11% year-over-year (or YoY). While the company achieved strong volume growth in 3Q17, its outlook for 4Q17 was weaker.
Steel prices are the key driver of steel companies’ profitability. For instance, steel prices tend to be strong in the first half of the year on strong domestic demand and inventory restocking. For instance, in 2015, steel prices were weak throughout the year.
Have US Steel Stocks Front-Loaded Their 2018 Gains? Last year, the Trump administration ordered a Section 232 investigation to assess whether steel imports threaten US national security. Now, the Commerce Department has submitted its findings to President Trump.
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.
US Steel Industry’s 2018 Outlook: Can the Momentum Continue? Higher Chinese steel exports have been blamed for the global steel industry’s woes. November was the 15th consecutive month in which Chinese steel exports registered a yearly decline.
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.
In this part, we’ll discuss how markets are valuing Cleveland-Cliffs’ (CLF) stock versus its peers as we head into 2018. For this purpose, we’ll use the EV-to-forward EBITDA multiple. Among the US steel and iron ore peers, Nucor (NUE) is trading at the highest forward multiple of 7.7x.
US Steel Industry’s 2018 Outlook: Can the Momentum Continue? As we noted previously, US steel stocks had a somber 2017. The year would have been even more lackluster for US steel stocks without the rally in December.