GO
Loading...

Steel Still Works?

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.

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

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report