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.
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.
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.