United States Steel (NYSE:X)
United States Steel Corp operates primarily in the United States but also has a steelmaking capacity in Slovakia. The company’s operating segments include North American Flat-Rolled (Flat-Rolled), Mini Mill, U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment includes U. S. Steel’s integrated steel plants and equity investees in North America involved in the production of slabs, strip mill plates, sheets, and tin mill products, as well as all iron ore and coke production facilities in the United States. It primarily serves North American customers in the service center, conversion, transportation, construction, container, and appliance, and electrical markets.
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| Open37.000 | Close37.420 |
| Vol / Avg.3.229M / 4.575M | Mkt Cap8.419B |
| Day Range36.730 - 37.903 | 52 Wk Range20.400 - 50.200 |
Steel Dynamics (NASDAQ:STLD)
Steel Dynamics operates scrap-based steel minimills with roughly 13 million tons of annual steel production capacity. The company manufactures steel products that primarily serve the construction, automotive, manufacturing, and transportation end markets. It also processes and sells recycled ferrous and nonferrous metals and operates a steel fabrication business that manufactures products for the nonresidential construction industry.
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| Open133.000 | Close134.040 |
| Vol / Avg.1.054M / 1.169M | Mkt Cap21.171B |
| Day Range133.000 - 136.280 | 52 Wk Range90.549 - 151.340 |
Cleveland-Cliffs (NYSE:CLF)
Cleveland-Cliffs Inc is an independent iron ore mining company in the United States and is a supplier of iron ore pellets to the North American steel industry from its mines and processing facilities located in Michigan and Minnesota. It is also engaged in the production of Hot-Briquetted Iron in the Great Lakes region with the development of a production plant in Toledo, Ohio.
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| Open18.240 | Close17.880 |
| Vol / Avg.9.278M / 8.965M | Mkt Cap8.501B |
| Day Range17.840 - 18.310 | 52 Wk Range13.610 - 22.970 |
Ternium (NYSE:TX)
Ternium is a leading steel producer in the U.S. It processes a wide range of steel products for industries such as construction, automotive, home appliances, agroindustry, packaging, transport and energy. Ternium has production centers in Argentina, Brazil, Colombia, the U.S., Guatemala and Mexico. It has the capacity to produce 12.4 million tons of steel annually.
The steel stock has a market cap of $4 billion and has an EPS of $0.98. It has an annual dividend yield of $1.20 per share. Ternium has an average daily trade volume of 140,000 shares. It generated revenue of $10 billion in 2019.
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| Open42.820 | Close43.580 |
| Vol / Avg.456.974K / 189.271K | Mkt Cap8.555B |
| Day Range42.820 - 44.250 | 52 Wk Range35.220 - 45.575 |
Commercial Metals (NYSE:CMC)
Commercial Metals is the largest manufacturer and fabricator of steel products in the U.S. Its range of products includes merchant bars, steel fence posts and wire rods. Commercial Metals steel products are used in various industries such as bridges, airports, skyscrapers, sports stadiums and hospitals.
The metal stock has a market cap of $2.4 billion and has an EPS of $2.33. It has an annual dividend yield of $0.48 per share. Commercial Metals has high liquidity and trades more than 744,000 shares per day. It generated revenue of $5.4 billion in 2019.
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| Open53.910 | Close53.480 |
| Vol / Avg.530.880K / 890.674K | Mkt Cap6.188B |
| Day Range53.440 - 54.370 | 52 Wk Range39.850 - 59.810 |
Steel stocks have taken a massive performance hit in the last few years. However, trade tensions have caused fluctuation that once was unheard of. In short, you should be a little more careful when investing in steel stocks.
Here’s a guide to help you invest in steel stocks that are making a market comeback.
Quick Look at the Best Steel Stocks:
- United States Steel Corp
- Steel Dynamics
- Cleveland-Cliffs Inc
- Ternium
- Commercial Metals
Overview: Steel Stocks
Capital investor Andrew Carnegie spent millions of dollars to establish the U.S. Steel Corporation (NYSE: X) in 1901. The steel stock was the first company with a valuation of over $1 billion.
In 1912, stainless steel, a higher quality of the metal, was invented. This refined form of steel found its way into military weapons manufacturing for both world wars. After the world wars concluded, steel still maintained high production rates due to car companies like Ford (NYSE: F), which rolled out a massive number of vehicles for the consumer market.
The steel mills of America produced more than 50% of the world’s steel in the mid-1900s and created over 700,000 jobs. Companies such as Nucor (NYSE: NUE) started producing steel from recycled scrap.
Growing tensions between the U.S. and China have negatively affected the steel industry. These trade wars caused a sharp drop in domestic steel prices and dampened its demand all over the world. Several steel companies such as Ternium (NYSE: TX) and Commercial Metals Company (NYSE: CMC) even dipped below $20 at one point, making them easier to access than ever before. Now might be a good time to add rebounding steel stocks to your portfolio.
Best Online Brokers for Steel Stock
You can browse through thousands of stocks with an online broker. These platforms are packed with educational resources to help you in your trading strategy. Online brokers allow you to trade an array of options: penny stocks, stocks, exchange-traded funds, mutual funds and forex.
Take a look at these online brokers to get started.
Features to Look for in Steel Stock
- Regular dividends: Many steel stocks reward their investors with quarterly or annual cash dividends. You can even consider reinvesting that money into buying more shares from the same steel company to amplify your long-term returns.
- Price-earnings ratio: You can calculate the price-earnings (P/E) ratio by dividing the stock price by the company’s earnings per share (EPS). A low P/E ratio could indicate that a stock is undervalued. Many steel stocks under $10 have a low P/E ratio.
- Trade policies: The back-and-forth proceedings of trade policies issued by the U.S. administration due to escalating pressures with China have had a major effect on steel stock prices. Take into account any steel-related news and closely track the changes on import and export tax rates before you invest in steel companies.
Build Your Portfolio on Solid Steel
After slow market growth in recent markets, steel stocks are starting to surge on the stock exchange. A majority of these steel stocks offer regular cash dividends that can cover your monthly expenses. Investing in steel companies can help you plan your stock portfolio for better long-term returns.
Frequently Asked Questions
What are steel stocks?
Steel stocks are shares in companies that are in the steel industry.
Are steel stocks a good investment?
Many sectors rely on steel, making it an in-demand industry. That makes it a good investment.
What are the best steel stocks?
Check out Benzinga’s list of the best steel stocks above.