27.56 -0.35 (-1.25%)
After hours: 4:06PM EDT
|Bid||27.93 x 3200|
|Ask||27.94 x 4000|
|Day's range||27.50 - 28.47|
|52-week range||24.82 - 47.64|
|Beta (3Y Monthly)||3.80|
|PE ratio (TTM)||9.22|
|Earnings date||1 Nov 2018|
|Forward dividend & yield||0.20 (0.71%)|
|1y target est||40.73|
Is the Sell-Off in US Steel Stocks Overdone? As we’ve already seen in this series, there’s been a sell-off in US steel stocks, including Nucor (NUE), U.S. Steel Corporation (X), and AK Steel (AKS). In the previous part, we looked at some of the domestic factors that could be making investors bearish on US steel stocks (XME).
US steel stocks are having a terrible month, which has added to their woes. U.S. Steel Corporation (X) and AK Steel (AKS) have fallen 7.5% and 1.8%, respectively, this month. Nucor (NUE) has shed 6.9% of its market capitalization this month. Let’s look now at the various factors that are driving the recent slump in steel stocks.
US steel stocks, which have been subdued for the last few months, have seen fresh selling pressure this month. Earlier this week, Credit Suisse downgraded US steel stocks from “overweight” to “equal weight.” Several other brokerages have also taken a bearish view of US steel stocks.
In this part of our series, we’ll look at Cleveland-Cliffs’s (CLF) valuation and compare it to those of its US steel peers. We’ll also look at its forward EV-to-EBITDA (enterprise value-to-EBITDA) multiples.
Cleveland-Cliffs (CLF) generated FCF of $182 million in 2017, which mostly went toward enhancing its core business, including its acquisition of the remaining minority interest in both the Tilden and Empire mines. According to the consensus compiled by Thomson Reuters, analysts expect Cliffs to generate FCF of $194 million in 2018, which implies growth of 6.5% YoY (year-over-year).
Wall Street analysts expect Cleveland-Cliffs (CLF) to generate revenue of $731 million in the third quarter, which implies a rise of 4.7% YoY (year-over-year). This expectation is the result of the company’s guidance for higher volumes along with higher spot HRC (hot-rolled coil) prices prevailing in the market compared to last year’s corresponding period. As we discussed earlier in this series, CLF expects higher volumes in the third quarter.
Cleveland-Cliffs (CLF) stock has received six upgrades (including initiations) and just one downgrade in 2018 so far.
Here are some of the companies with shares expected to trade actively in Tuesday’s session. Stock movements noted by ticker reflect movements during regular trading hours; premarket trading is specified separately.
Along with volumes, realized revenues are among the most important components that drive a commodity company’s top line. Realized prices also help assess market sentiment, as they derive from existing market prices.
The committee raised just over $2 million from July through late September. It also received eye-popping contributions from longtime Trump attorney Marc Kasowitz, who gave $50,000, and United States Steel Corp. donated $100,000.
Corp. struck a tentative agreement for a new labor contract covering at least 14,000 workers, breaking a three-year wage freeze. On a company website dedicated to the negotiations, U.S. Steel touted increases in base wages over a six-year term.
PITTSBURGH, Oct. 15, 2018 -- United States Steel Corporation (NYSE: X) today announced that it reached a tentative agreement with the United Steelworkers (USW) on successor.
On October 15, Credit Suisse downgraded the US steel sector to a “market weight” from an “overweight” rating. Credit Suisse downgraded Nucor (NUE) and Cleveland Cliffs (CLF). Several other brokerages have also taken bearish views on US steel stocks.
Even though tariffs have bumped the prices for domestic steel and aluminum, these four stocks are down more than 15% this year.
U.S. Steel Corporation (X) is scheduled to release its third-quarter earnings results on November 1. The stock has received “buy” or higher ratings from eight analysts, while six analysts have given it “hold” ratings. The remaining two analysts polled by Thomson Reuters on October 9 have given it “sell” or equivalent ratings.
Although the broader market (DIA) is still in the green for the year, metals and mining stocks have sagged this year. Steel stocks like U.S. Steel (X) and AK Steel (AKS) have also been on a losing spree. Metal prices have been subdued this year amid the US-China trade war scare.
AK Steel (AKS) is scheduled to release its third-quarter earnings results on October 25. Five analysts have rated AK Steel as a “hold,” while the remaining two analysts polled by Thomson Reuters on October 9 have given it “sell” or equivalent ratings. AK Steel’s mean consensus price target of $5.25 represents a 9.4% upside over its October 9 closing price.
Nucor (NUE), the largest US-based steel producer, is scheduled to release its third-quarter earnings results on October 18. In this article, we’ll see how analysts are rating the stock ahead of its earnings release.
Steel Dynamics (STLD) has scheduled its third-quarter earnings release for October 17, and it will hold its earnings call the next day.
The third-quarter earnings season is fast approaching. Steel Dynamics (STLD) will be the first major steel company to release its quarterly performance on October 17. This release will be followed by Nucor’s (NUE) earnings release on October 18.
Reviving American manufacturing was one of President Trump’s major campaign planks. We’ve seen plant restarts in the aluminum and steel industry after the Section 232 tariffs were implemented. US unemployment levels are also hovering around multiyear lows. A tightening job market coupled with President Trump’s push for domestic manufacturing could benefit US workers.
As we noted previously in this series, US steel prices have peaked. We could see them gradually taper down as domestic steel production rises and the Trump administration defines the Section 232 exemptions.
According to an October 1 Bloomberg article, citing an Australian government report, steel “production in China will peak in 2018 and then shrink next year as local demand drops.” This isn’t the first time that concerns over peak Chinese steel demand have cropped up.
In the previous article, we noted that although the near-term outlook for US steel demand looks positive, rising interest rates might take a toll on steel demand from the construction and automotive sectors in the medium to long term. US steel production has picked up the pace after the implementation of President Trump’s Section 232 tariffs. The company also expects its production capacity to increase by ~1.0 million metric tons after it completes its asset revitalization plan.
The United States, Mexico, and Canada (EWC) have agreed to a new NAFTA deal that’s expected to replace the existing one—the United States–Mexico–Canada Agreement (or USMCA). The regional auto content rules have been enhanced under the new agreement, and 75.0% of cars should be made in North America, compared to the previous requirement of 62.5%. The new rules require more automotive production in regions where workers are paid more than $16.00 per hour.