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Steel Stocks To Buy


Steel Stocks To Buy

Forty-year high inflation led to steel prices skyrocketing over the last few years and many companies that produce the metal have been able to benefit. The Steel-Producers Industry is currently in the top 4% of over 250 Zacks Industries, indicating this trend could continue.

The structural steel, steel bars, steel joists, steel deck, and cold-finished bars producer has continued to grow its business through lucrative acquisitions with its largest being C.H.I. Overhead Doors for $3 billion in 2022.

Another steel producer stock carrying a Zacks Rank #1 (Strong Buy) is Steel Dynamics. As one of the most diversified steel companies in the U.S. Steel Dynamics makes and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.52% per year. These returns cover a period from January 1, 1988 through February 6, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Steel prices, and steel stocks, have had an incredible run coming out of the Covid-induced recession. There is still room, however, for stocks to work higher. Seaport Global launched coverage of the steel sector Monday evening. Analyst Martin Englert see more gains for the sector before the good times end.

Steel stocks are among the class of investments that become more popular when fears of inflation increase. And these stocks are perhaps even more popular right now, as shortages have put upward pressure on the price of steel. As steel remains an important material in buildings, bridges and cars, demand remains strong despite persistent shortages.

Nucor stock has fared fairly well lately with a 1-year return of 11%. It has a market cap of nearly $28 billion and the stock pays a dividend of about 1.9%. The stock is undervalued, and for the past two quarters, Nucor has posted revenue of about $10 billion. Despite this, analysts recommend holding the stock right now, perhaps due to stabilizing steel prices.

Steel Dynamics was founded in 1993 by three former Nucor executives who had $370 million in financing to kick-start their new business venture. They set out to become a low-cost leader by advancing mini-mill technology. Today, it produces steel products that include hot roll, cold roll and coat sheet steel. The company has about 13 million tons of steel shipping capacity.

Cleveland-Cliffs is based in Cleveland, Ohio, and is the largest flat-rolled steel producer in North America. It specializes in the mining, beneficiation and pelletizing of iron ore in addition to steel production. The company also acquired ArcelorMittal USA and AK Steel in order to become more vertically integrated from the process of mining to the manufacturing of steel products.

U.S. Steel is valued at close to $5 billion, and like most steel stocks, is currently undervalued. It pays a small dividend that yields around 1%. Its shares sell for around


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