How Do Analysts Rate US Steel Stocks after Their 4Q16 Earnings?


Feb. 8 2017, Published 5:32 p.m. ET

US steel stocks

The earnings season for 4Q16 is nearly over, and most steel companies have reported their quarterly earnings. Earnings for the steel industry kicked off as AK Steel (AKS) and Steel Dynamics (STLD) released their 4Q16 earnings on January 24, 2017. U.S. Steel Corporation (X) and Nucor (NUE) released their 4Q16 earnings on January 31.

ArcelorMittal (MT), the world’s largest steelmaker, plans to release its 4Q16 earnings on February 10. You can read ArcelorMittal’s Upcoming 4Q16: Do Bears Smell Opportunity? to see analysts’ expectations from MT’s 4Q16 earnings.

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Subdued earnings season

It’s been a subdued earnings season for steel investors (XME). Both Steel Dynamics and AK Steel saw negative price action after their respective 4Q16 earnings releases. Steel Dynamics missed consensus earnings estimates, and AK Steel saw selling pressure on a tepid outlook despite beating consensus earnings estimates.

Nucor (NUE) and U.S. Steel Corporation (X) released their 4Q16 earnings on January 31. Both companies saw selling pressure despite posting better-than-expected earnings. You can read Key Takeaways from U.S. Steel’s 4Q16 Earnings to explore U.S. Steel’s 4Q16 financial performance.

Series overview

Several analysts turned bullish on steel stocks after Donald Trump’s victory in the US presidential election. We saw a steep rally in steel stocks after his election, as you can see in the above graph.

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 4Q16 earnings releases. We’ll also see how the performance of steel companies could look for 2017.

Let’s begin by looking at analyst ratings and target prices for AK Steel.


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