Equity markets have seen significant volatility in the last few weeks. November started on a weak note for markets. Broader market indices (SPY) turned negative for the year during November. However, markets rallied in the last week of November due to optimism about US-China trade talks.
The meeting between President Trump and President Jinping helped improve the risk sentiments. The two sides agreed on a 90-day truce. However, the optimism didn’t last long. The markets fell sharply on December 4.
In the steel space, stocks like U.S. Steel Corporation (X) and AK Steel (AKS) are trading near the 52-week lows that they hit last month. Cleveland-Cliffs (CLF) is still in the green for the year. However, the stock has pared most of its 2018 gains. Nucor (NUE) is in the red this year.
Despite the Section 232 tariffs, which were hailed as a “savior” by US steel companies, US steel stocks have sagged in 2018. Read What Caused the Mess in the US Steel Industry to see what has been impacting steel stocks despite President Trump’s tariffs.
In this series, we’ll discuss how analysts are rating steel stocks amid the market carnage. We’ll also see how analysts have changed their ratings on steel stocks.
Next, we’ll discuss Nucor’s ratings and target price.