Steel Stocks Recoup Losses after MT’s Earnings Lift Sentiments
Steel stocks had another volatile week last week. It started on a positive note, and most steel stocks saw upwards price action last Monday. But steel market sentiments were mostly negative throughout the week.
On Friday, we saw some buying support in steel stocks after ArcelorMittal’s (MT) 3Q17 earnings, and positive commentary on steel markets boosted sentiments.
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Among individual steel names (SPY) (SPX), Nucor (NUE) was the worst performing steel stock in our select group of steel stocks, losing 3.7% last week. U.S. Steel (X) gained 1.6% during the week, while AK Steel (AKS) closed almost flat.
Notably, AK Steel has underperformed most of its peers this year. The stock is trading with YTD (year-to-date) losses of 58.6%. While AK Steel is having a dismal year, its 3Q17 earnings miss provided further fodder to bears and the stock lost 21.5% after its 3Q17 earnings release. You can read Why AK Steel’s 3Q17 Earnings Triggered a Selling Spree for a broad overview of AK Steel’s 3Q17 earnings and guidance.
Several analysts downgraded AK Steel after its 3Q17 earnings miss. You can read Analysts Take a Fresh Look at US Steel Stocks after 3Q17 to see how analysts are rating leading steel stocks after their 3Q17 financial results.
In this series, we’ll take a closer look at the major developments that impacted US steel stocks last week. We’ll also look at the key events that US steel investors should follow this week.