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.
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