|Bid||45.80 x 1100|
|Ask||49.29 x 900|
|Day's Range||46.69 - 47.45|
|52 Week Range||32.20 - 52.10|
|PE Ratio (TTM)||13.51|
|Earnings Date||Jul 23, 2018|
|Forward Dividend & Yield||0.75 (1.60%)|
|1y Target Est||53.50|
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.
WallStEquities.com reexplores the Steel and Iron sector, which covers the manufacture of steel into basic shapes and forms that then can be used to create products.Under evaluation this morning are the following four stocks: Steel Dynamics Inc. (NASDAQ: STLD), United States Steel Corp. (NYSE: X), Gerdau S.A. (NYSE: GGB), and Nucor Corp. (NYSE: NUE). On Tuesday, shares in Fort Wayne, Indiana headquartered Steel Dynamics Inc. recorded a trading volume of 1.49 million shares.
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.
The US equity markets saw nothing short of carnage on June 25 as concerns of trade war escalation took hold. Conflicting signals came from the Trump administration regarding plans to restrict foreign investment in US technology companies. This along with news that the recent tariffs have started to hit businesses’ supply chains sent the stocks spiraling down. The Dow Industrials Average Index (DIA) (DOW) and the S&P 500 Index (SPY) (SPX) closed down 1.3% and 1.4%, respectively. The tech-heavy NASDAQ composite (QQQ), on the other hand, fell harder by 2.1%.
Are President Trump’s Efforts to Save Steel Worth the Pain? The Commerce Department is investigating whether some market participants are “illegitimately profiteering” after the Section 232 tariffs. The US steel industry’s capacity utilization rate is languishing below 75%, way below the 80% utilization rate the US Department of Commerce intended to achieve with the Section 232 tariffs.
Investors who want to cash in on Steel Dynamics Inc’s (NASDAQ:STLD) upcoming dividend of US$0.19 per share have only 2 days left to buy the shares before its ex-dividend date,Read More...
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Over the past 10 years, Steel Dynamics Inc (NASDAQ:STLD) hasRead More...