Top Steel Stocks To Watch
When it comes to basic materials, steel is a sector that has been performing rather well in recent times. Plenty of steel stocks are reaching new heights in the market at the moment. Throughout history this has been a huge sector in the United States. But despite this, the quantity of steel mills has declined in recent years as a result of competition overseas. 2020 started off nicely for these stocks though, until the pandemic arrived. The pandemic caused markets to fall all over the world, including steel assets. But steel has managed to make a comeback. This is a result of rising demand and an increase of steel prices. Production has resumed at major steel operations despite the pandemic situation at the moment.
The demand for steel is high right now which has brought steel prices up. Among all of the trending metal stocks at the moment, this sector seems to be one to keep your eye on. Another sector that has bounced back in recent times is the construction sector. Projects are being resumed that were previously halted due to the pandemic, which brings the demand for steel higher. The non-residential construction market in particular is doing great. The automotive sector has also started to take a turn. Production and sales are going up as we continue through 2021.
Construction and automobiles account for a large amount of steel consumption, so you can see how this is all starting to make sense. There are many metal stocks that are increasing in value in the market at the moment. But it can be difficult to decide what the best one may be for you. With that being said, let’s take a look at four steel stocks that have increased their value in the market, and potentially have more in store.
Top Steel Stocks To Watch
- ArcelorMittal (NYSE: MT)
- Steel Dynamics Inc. (NASDAQ: STLD)
- Reliance Steel & Aluminum Co. (NYSE: RS)
- Commercial Metals Company (NYSE: CMC)
The first steel stock to watch is ArcelorMittal. ArcelorMittal is a mining corporation owning and operating steel manufacturing and mining facilities. The company’s facilities are located in Europe, the Americas, Asia, and Africa. Its steel products are not limited to slabs, coils, sheets, billets, and more. ArcelorMittal’s mining products include iron ore lumps, concentrates, and pellets. The products are primarily sold to companies in the automotive, engineering, construction, machinery, and energy industries. Let’s have a look at how ArcelorMittal is performing in 2021 so far.
Its latest update was on January 28th, 2021. The company announced the publication of its fourth quarter 2020 EBITDA sell side analysts’ consensus figures. The average consensus totaled $1,472. Since 2021 has started, MT stock price has gone down about $1 per share. But in the last 6 months, MT stock went from $12 a share to $21 a share on average as of February 4th, 2021. It will be very interesting to see what happens next for this steel stock in the market.
Steel Dynamics Inc.
Next up on this list of steel stocks is Steel Dynamics Inc. Steel Dynamins is a steel producer and metal recycler. The company operates in the United States. It offers steel operations products such as hot roll, cold roll, and coated steel products and more. Most of its products are used in automotive, construction, manufacturing, heavy and agriculture equipment, and transportation sectors. Let’s take a look at the company’s latest updates and performance in February 2021.
On January 25th, the company reported its fourth quarter and annual 2020 results. It was here that it announced near record amounts of steel shipments, totaling 10.7 million tons. Its steel fabrication shipments broke a new record of 666,000 tons. The company’s total net sales were $9.6 billion in 2020. 2020 was Steel Dynamics 4th best year in its history since its conception. The President and CEO, Mark D. Millett stated, “Numerous individual operating and financial records were also attained during the year an amazing achievement during a period in which many steel consuming businesses were temporarily idled or severely impacted by the social and economic effects of the coronavirus pandemic.” Now we wait to see what will come next from the company.
Reliance Steel & Aluminum Co.
Now let’s talk about Reliance Steel & Aluminum Co. Reliance is a company that operates as a metal service center. It will provide steel, alloy, aluminum, brass, copper, and more to a variety of companies. These include manufacturing, construction, aerospace, energy, electronics, and many other sectors. The company additionally will sell precision sheet metal fabrication services, such as laser cutting. So what is the latest that has come from the company?
Well on February 4th, Reliance Steel & Aluminum Co. announced the release date for its fourth quarter and full year 2020 results. The results will be released on February 18th, 2021 a few hours before market open. In the last 5 days, RS stock price has gone from $118 a share to $123 a share on average as of February 4th, 2021. Now we wait to see what these financial results will do for the future of Reliance. At its low point in March, RS stock reached numbers as far down as $74 per share on average. This company recovery proves great momentum for RS stock in the past, so what will the future hold?
Commercial Metals Company
The final steel stock is Commercial Metals Company. Commercial Metals will recycle and fabricate steel and metal products. Its operations are primarily in the United States, China, Poland, and Germany. It processes and sells ferrous and nonferrous scrap metals to steel mills as well as a variety of other services. Let’s take a look at the recent 2021 company performance.
On February 2nd, the company announced early participation results. It also released an early settlement date for a cash tender offer for outstanding 2026 senior notes. The company’s previously announced offering of $300 million aggregate principal 3.875% senior notes due 2031 has been completed. The net proceeds will be used to fund the tender offer. That is the latest we’ve heard from the company.
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