Steel stocks rise as Cowen sees rebound in fundamentals gaining steam

Steel companies (SLX +1.4%) are higher after Cowen analyst Anthony Rizzuto says improving steel market fundamentals are likely to provide a catalyst for steel stocks to rise.

With Q1's bad weather now finished, the domestic steel market appears to be tightening and sentiment improving, Rizzuto says, expecting investors to focus more on the outlook for the remainder of 2014 than on Q1 results.

The firm rates US Steel (X +3.1%), ArcelorMittal (MT +2.5%) and Reliance Steel (RS +0.3%) at Outperform; AK Steel (AKS +5.9%), Nucor (NUE +1.7%) and Steel Dynamics (STLD +1.3%) are Market Perform.

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Comments (2)
  • wigit5
    , contributor
    Comments (4365) | Send Message
    This should trickle down to Met coal companies as well if it holds true, although my sources say the benchmark for met coal prices is set to be weaker than last Q (it may already be published I'm not sure).
    8 Apr 2014, 03:39 PM Reply Like
  • marpy
    , contributor
    Comments (1718) | Send Message
    Saying something is going to get better because the weather is getting better usually does not have much staying power. A trading opportunity - maybe.
    9 Apr 2014, 12:03 PM Reply Like
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