Wall Street’s Steel View: Which Steel Stocks Analysts Are Eyeing



Wall Street views

So far in this series, we’ve done a comparative analysis of steel companies’ 3Q17 earnings. In this final part, we’ll see how analysts are rating leading steel producers after their 3Q17 earnings.

Most “buy” recommendations

ArcelorMittal (MT) has the maximum percentage of “buy” or higher recommendations in our select group of steel stocks. The stock has received a “buy” or higher rating from 81% of the analysts polled by Thomson Reuters as of November 14.

AK Steel (AKS) has the least percentage of “buy” recommendations, and the stock has been rated as a “buy” by only 31% of analysts. U.S. Steel (X) has received a “buy” rating from 51% of its analysts, while 13% analyst recommend a “sell.”

Nucor (NUE) and Steel Dynamics (STLD) have received a “buy” or higher rating from 57% and 69% of analysts, respectively. Both Nucor and Steel Dynamics don’t have any “sell” recommendations.

Upside potential

AK Steel is trading 35.5% below its consensus price target, based on its November 14 closing price—the highest in our coverage of steel stocks. Steel Dynamics’ target price implies a potential upside of 14.2% over its November 14 closing price—the lowest in our select group of steel stocks.

U.S. Steel and ArcelorMittal are trading 17.0% and 19.7% below their consensus price targets, respectively, based on their November 14 closing prices.

Notably, several brokerages have revised their target prices for steel stocks after the 3Q17 earnings results. You can read Analysts Take a Fresh Look at US Steel Stocks after 3Q17 for a detailed analysis of steel companies’ ratings and target prices.

You might also want to visit our Steel page for ongoing updates.

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