GO
Loading...

Steel Still Works?

Tuesday, 24 Jun 2008 | 3:40 PM ET

The U.S. Steel CEO said earlier Tuesday the recent jump in raw materials prices will push steel prices higher. So is now the time to pile up on steel stocks?

I think you might be a little late to the party, says Guy Adami on CNBC’s Closing Bell, but not that late. Goldman just put “letter X” on it’s Conviction Buy List with a $225 price target. It’s trading 10 and a half times forward earnings. If you think that valuation is too rich, I say they will grow into that multiple.

Any other plays?

The play that nobody talks about for steel is Freeport McMoRan . It’s a great performing stock. They mine molybdcenum which is a key component of steel making.

And I like Nucor as a possible takeover target.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

  Price   Change %Change
FCX
---
NUE
---
X
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report