Kirkland Lake is first among analysts' favorite gold stocks with 91% “buy” and 9% “hold” ratings. The target price implies a potential upside of 16%.
US steel demand has fallen sharply due to the COVID-19 pandemic. The automotive sector will start resuming operations, which should support demand.
UBS is bearish on US steel stocks. Last week, UBS lowered Steel Dynamic's target price from $43 to $32 and Nucor's target price from $56 to $39.
Since March, gold prices are on a tear due to uncertainty surrounding COVID-19. The SPDR Gold Shares has seen gains of 16.2% since March 18.
U.S. Steel Corporation, Nucor, and ArcelorMittal announced a price hike earlier this month. US steel prices fell to multiyear lows amid COVID-19.
While the US slapped tariffs on imports on several key product categories, the US steel industry’s fortunes haven’t really revived.
In 2020, gold prices have been shining due to turmoil in the equity market. The S&P 500 Index (NYSEARCA:SPY) has fallen by 12.4% on a YTD basis.
U.S. Steel Corporation (NYSE:X) released its first-quarter earnings on Thursday after the markets closed. The earnings were better than expected.
The earnings season is in full swing. This week, Nucor (NYSE:NUE) and U.S. Steel Corporation (NYSE:X) will likely release their first-quarter earnings.