How Are Analysts Rating Steel Stocks amid Heightened Volatility?
Steel stocks have seen heightened volatility over the last few weeks. AK Steel (AKS) and U.S. Steel (X) are trading with year-to-date (or YTD) losses of 41.5% and 36.5%, respectively. U.S. Steel especially has come under selling pressure after the company missed its 1Q17 earnings estimates by a wide margin and slashed its 2017 guidance.
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ArcelorMittal (MT), the world’s largest steelmaker, is scheduled to release its 1Q17 earnings on May 12. You can read Can ArcelorMittal’s 1Q17 Earnings Lift Steel Market Sentiments? to find out what analysts are projecting for ArcelorMittal’s 1Q17 earnings.
1Q17 earnings season
It’s been a mixed earnings season for steel investors (XME). While Steel Dynamics and AK Steel (AKS) posted better-than-expected earnings in the quarter, Nucor’s (NUE) 1Q17 earnings fell slightly short of expectations. Nonetheless, Nucor saw upwards price action after its 1Q17 earnings on better-than-expected revenues and a rosy outlook. You can read Nucor’s 1Q17 Earnings: What You Need to Know to explore more about Nucor’s 1Q17 earnings.
The 1Q17 earnings season for US-based steel companies is nearly over and most leading companies have released their 1Q17 earnings. Generally, analysts revise their target prices and recommendations following a company’s earnings release to reflect the earnings and outlook provided by the company’s management. In this series, we’ll analyze how analysts rate US steel stocks after their 1Q17 earnings releases.
Before we look at steel companies’ ratings and target prices, let’s first look at the recent news from U.S. Steel.