Five Steel Stocks to Buy Now

Commercial Metals Company (NYSE:CMC) saw the number of bullish investors go up by six both over the quarter and over the year to 20. The company has recently declared a $0.12 quarterly dividend, which gives its stock a yield of 2.05%. Commercial Metals Company (NYSE:CMC)’s stock is up by 28% over the last three months, amid the company registering increasing double-digits quarterly revenue growth in the last four quarters, reversing from the previous declines. For the fiscal first quarter, Commercial Metals Company (NYSE:CMC) posted EPS of $0.30, better than the expected $0.17, while its revenue went up by 25% on the year to $1.24 billion and topped the consensus by $130 million. For the current quarter, the company expects to see growrth in end markets among non-residential construction and OEMs. In addition, Commercial Metals Company (NYSE:CMC) said it plans to buy Gerdau’s US steel rebar assets for $600 million, in a move that would help it reduce pricing pressure on rebar.

In Allegheny Technologies Incorporated (NYSE:ATI), there were 28 funds holding shares at the end of 2017, compared to 23 funds a quarter earlier. In addition, Allegheny registered the largest year-on-year increase in the number of bullish investors, as there were 13 funds long the stock at the end of 2016. At the beginning of March, analysts at Bank of America Merrill Lynch and KeyBanc upgraded Allegheny Technologies Incorporated (NYSE:ATI)’s stock to ‘Buy’ and ‘Overweight’ from ‘Neutral’ and ‘Sector Weight’, respectively. BofA Merrill Lynch analysts, which have a $32 price target on the stock, said that the sell-off that the stock had registered presented a good entry point, given the company’s expected benefits from the new technology cycle in jet engines. KeyBanc has a $31 target on the stock and the analysts are bullish on the company due to the margin improvement potential in the flat-rolled steel segment and 2019 sum-of-parts valuation analysis, which shows an eventual share value above $35.

There were 33 investors tracked by Insider Monkey long Nucor Corporation (NYSE:NUE) heading into 2018, versus 27 funds a quarter earlier and 30 funds at the end of 2016. Recently, Nucor Corporation (NYSE:NUE) has updated its first-quarter earnings guidance. The company now expects EPS between $1.07 and $1.12, versus a consensus estimate of $1.01. Nucor Corporation (NYSE:NUE) sees more upside in steel mill products to continue into the second quarter. It also has announced plans to build a $240 million rebar micro mill in Frostproof, Florida, the second micro mill Nucor is building.

Even though United States Steel Corporation (NYSE:X) saw the number of investors holding shares decline by one to 34 during the last year, during the fourth quarter, that figure appreciated by four funds. Last week, United States Steel Corporation (NYSE:X)’s stock plunged after the company said that it is expecting fiscal 2018 EBITDA of $1.70 billion, up from the previous $1.50 billion, citing potential market conditions from Section 232 actions (Section 232 of the Trade Expansion Act of 1952 allow the executive branch to determine the effects on the national security of imports) and increased shipments from Granite City Works plant of around 100,000 tons per month. However, the market was not impressed with the guidance and sent the stock lower, although some analysts consider that the sell-off was an overreaction and that the drop created a good entry point.

Steel Dynamics, Inc. (NASDAQ:STLD) is the most popular steel company among the investors in our database. At the end of 2017, there were 36 hedge funds holding shares of the company, up by nine over the quarter, but lower than 42 funds that had held shares a year earlier. Steel Dynamics, Inc. (NASDAQ:STLD)’s shares have appreciated by 31% over the last 12 months on the back of strong financial results with EPS and revenue either in-line or topping estimates. Last week, Steel Dynamics, Inc. (NASDAQ:STLD) provided first-quarter guidance below the consensus. The company said it expects EPS between $0.88 and $0.92, versus expectations of $0.94, but the results are still above the last-year figure of $0.82. Steel Dynamics, Inc. (NASDAQ:STLD) is also optimistic that strong steel demand fundamentals will continue throughout 2018.

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