Weekly Roundup: Steel Stocks Saw Their Fortunes Reverse


Dec. 4 2020, Updated 10:51 a.m. ET

Steel stocks

Last week was mixed for steel stocks—they followed different trajectories. With gains of 6.6%, AK Steel (AKS) was the biggest gainer in our coverage of steel stocks (SPY) (SPX). However, if we look at the YTD (year-to-date) performance, AK Steel has been among the worst-performing steel stocks this year. So far, 2017 has been a dismal year for AK Steel. The stock more than quadrupled last year after “Trump trade” and rising steel prices boosted US steel stocks.

ArcelorMittal (MT), which has outperformed its US-based peers this year, was the worst performer last week. ArcelorMittal closed with losses of 6.1%. U.S. Steel (X) also closed with losses of 0.7% last week.

Article continues below advertisement

Price action

Nucor (NUE) was the second-worst performing stock in our select group of steel companies. It closed with losses of 1.8% last week. Steel Dynamics lost 1.0% last week. We should note that Steel Dynamics has outperformed Nucor for the past few years—including 2017. Steel Dynamics, which has historically traded at a discount to Nucor, is trading at similar trading multiples as Nucor. Read Steel Dynamics Almost Closes Its Valuation Gap with Nucor for a comparative analysis of steel companies’ valuation.

Series overview

In this series, we’ll take a closer look at the major developments that impacted US steel stocks last week. We’ll also see how Wall Street analysts changed their ratings on leading steel stocks last week.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.