9 Jan

Will Your Steel Stocks Continue to Ride High in 2017?

WRITTEN BY Mohit Oberoi, CFA

Steel stocks

What a year 2016 was for steel stocks (XME). U.S. Steel (X) and AK Steel (AKS) rose more than 300% in the year. ArcelorMittal (MT), the world’s largest steel company, also saw significant upwards price action last year.

The steel industry’s 2016 performance was a welcome break for investors who had seen their holdings fall since late 2014. Notably, U.S. Steel and ArcelorMittal lost more than 60% of their respective market capitalizations in 2015. Nucor (NUE) also ended 2015 with losses of ~18%.

Will Your Steel Stocks Continue to Ride High in 2017?

Trump’s election

Though steel stocks gained substantially during the year, it wasn’t a smooth ride. Steelmakers saw their fortunes change several times in 2016. However, Trump’s election turned out to be a game changer. Steelmakers saw upward price action after Trump’s win. The market’s reaction to the election results wasn’t surprising given Trump’s stance on curbing imports and boosting US manufacturing. Read Weighing Trump’s Mettle: Will He Be a Game Changer for US Steel? to find out what a Trump presidency could mean for steel stocks.

Series overview

Now, with 2016 behind us, investors are wondering whether steel stocks will continue their good run in 2017 or if we could see a pullback from these levels. In this series, we’ll look at the US steel industry’s 2017 outlook and explore how steel prices could play out in the year. We’ll also look at the key developments that steel investors should watch for in 2017.

Let’s begin by looking at steel companies’ 2016 performance in the next article.

Latest articles

The Hill reported yesterday that on November 20, the House Judiciary Committee plans to mark up legislation that federally decriminalizes marijuana.

Spotify (SPOT) stock fell during Tuesday’s trading session, as investors fear the entry of Chinese rival TikTok, putting Spotify’s subscribers at risk.

Several midstream stocks hit their respective 52-week lows in the last five days. Crude oil prices took a hit yesterday amid concerns over trade talks.

Tech giants Apple and Microsoft have been on an absolute tear this year. While AAPL has gained 69.3% year-to-date, MSFT has returned 48%.

The metals and mining space has sagged amid demand slowdown and US-China trade concerns. So, does Freeport-McMoRan or Alcoa look better placed?

Nio's previous CFO, Louis Hsieh, resigned in October, and the company announced that it's appointed Wei Feng as its new CFO, effective November 18.