|Bid||0.00 x 1300|
|Ask||0.00 x 800|
|Day's range||46.62 - 47.73|
|52-week range||32.20 - 52.10|
|PE ratio (TTM)||13.34|
|Earnings date||23 Jul 2018|
|Forward dividend & yield||0.75 (1.60%)|
|1y target est||53.50|
To date, the Department of Commerce has approved 220 requests for exclusions of steel and aluminum and denied 175. The rest are waiting to be processed.
Based on the July 16 closing prices, U.S. Steel Corporation has only risen 3.4% this year. On the other hand, AK Steel (AKS) is deep in the red. AK Steel has seen its market capitalization fall 19.8% this year.
Analysts’ EBITDA estimates reflect their expectations for a company’s future profitability. Analysts usually derive these estimates from revenue projections, margin assumptions, or cost projections.
Nucor’s (NUE) second-quarter earnings are expected on July 19. Let’s see what analysts are projecting for the company’s second-quarter earnings and stack that against its guidance. Other steel companies, including U.S. Steel Corporation (X) and AK Steel (AKS), are also expected to post higher revenues in the second quarter.
It is too early to assess which industries will suffer the most because of the trade war, but it can be safely said that domestic steelmakers stand to gain the most.
Steel Dynamics (STLD) is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective.
Cleveland-Cliffs (CLF) will release its second-quarter results before the market opens on July 20. Cleveland-Cliffs’ second-quarter results are important for investors for several reasons. Due to the impact of tariffs, there has been a significant upward revision in domestic steel prices since then.
Among the analysts surveyed by Thomas Reuters on July 6, nine analysts rate ArcelorMittal (MT) as a “strong buy,” seven analysts rate the stock as a “buy,” one analyst rates the stock as a “hold,” and one analyst rates the stock as a “sell.” The stock has the highest percentage of “buy” ratings among the steel stocks that we’re covering in this series. ArcelorMittal has received a mean consensus target price of 34.7 euros, which represents a 36.3% upside over its closing prices on July 6. U.S. Steel Corporation (X) and AK Steel (AKS) are trading 32.6% and 23.0%, respectively, below their consensus target prices.
Among the analysts polled by Thomas Reuters on July 6, five analysts rate AK Steel (AKS) as a “buy,” six analysts rate it as a “hold,” and three analysts rate it as a “sell” or some equivalent. Notably, AK Steel has the lowest percentage of “buy” ratings among the steel stocks that we’re covering in this series.
Among the analysts polled by Thomas Reuters on July 6, three analysts rate Steel Dynamics (STLD) as a “strong buy,” six analysts rate the stock as a “buy” or some equivalent, and five analysts rate it as a “hold.” The stock has received a mean consensus target price of $53.5, which represents 15.3% upside over its closing prices on July 6.
Among the analysts polled by Thomas Reuters on July 6, four analysts rate Nucor (NUE) as a “strong buy,” seven analysts rate it as a “buy” or some equivalent, and four analysts rate it as a “hold.” Nucor hasn’t received any “sell” ratings. The stock’s mean consensus target price of $77.7 represents 22.6% upside over its closing prices on July 6.
The second-quarter earnings season is quickly approaching. Nucor (NUE) is expected to release its quarterly earnings on July 19. Steel Dynamics’ (STLD) second-quarter earnings are scheduled to be released on July 23. AK Steel (AKS) has scheduled its second-quarter earnings for July 30, while U.S. Steel Corporation’s (X) earnings are slated for August 1. The company would hold its second-quarter earnings call on August 2. ArcelorMittal (MT), the world’s largest steel producer, is expected to release its second-quarter earnings on August 1.
If President Trump does what he said he will do, the trade war will only intensify. It's a prerequisite that we see who gains and who loses from the situation.
As a result, investors who are interested in Cleveland-Cliffs (CLF) track US steel demand. In this part of our series, we’ll see how investors can track the demand for US steel by monitoring demand indicators. The housing sector seems to be feeling the pinch of President Donald Trump’s tariffs. President Trump imposed anti-subsidy duties on Canadian softwood lumber imports in April last year.
Cleveland-Cliffs’ (CLF) US iron ore segment contributes the most to its revenues and earnings. Cleveland-Cliffs’ customers, including AK Steel and ArcelorMittal, are impacted directly by steel imports into the United States. As a result, investors should track this data to get a sense of the future shipments outlook for Cliffs.
In this article, we’ll look at steel companies’ forward EV-to-EBITDA multiples. U.S. Steel Corporation (X) has the lowest 2018 EV-to-EBITDA multiple of 4.28x among the companies that we’re comparing in this article, and AK Steel (AKS) has the highest multiple of 6.14x.
As we noted previously, US spot HRC (hot roll coil) prices are hovering near a ten-year high. Higher steel prices are expected to boost earnings for steel companies like U.S. Steel Corporation (X) and AK Steel (AKS).
The Heartland buyout will expand Steel Dynamics' (STLD) total steel shipping capability to 12.4 million tons and annual flat roll steel shipping capacity to 8.4 million tons.
In this part of the series, we’ll look at May steel production data that were released by the World Steel Association on June 25. Global steel production was 154.9 million metric tons in May, a YoY (year-over-year) rise of 6.6%. In the first five months of the year, global steel production rose 4.3% YoY.
Steel Dynamics (STLD) plans to invest $90-$100 million during the next 24 months in addition to the usual capital reinvestment at the Columbus facility.
Investors in steel companies such as U.S. Steel Corporation (X) and AK Steel (AKS) should keep track of demand indicators. Over the long run, supply-demand dynamics tend to drive steel prices. The construction sector is the largest steel user.
We’ve seen a lot of action in the steel space this year. In March, President Donald Trump imposed Section 232 tariffs on steel imports. The tariffs were subsequently watered down, and almost two-thirds of the imports were temporarily exempted from the tariffs. However, last month, Trump hardened his stance and refused to extend the exemptions for NAFTA countries and the European Union.
In March, President Donald Trump imposed tariffs on US steel and aluminum imports. While initially only NAFTA was exempted from the tariffs, we also saw several other regions, including South Korea, Brazil, and the European Union, get temporary exemptions.