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Jun.30
6:14 PM ET

Mark Parr, a steel analyst for KeyBanc Capital Markets, said the next year is prime time to stock up on steel.

“We think this continues to be a very fertile place for solid capital gains,” Parr said.

With the Dow Jones steel index increasing 40 percent in the last year and 5 percent in the last month, Parr offered a few of his stock picks to get in on the trading action.

Recommendations:

Nucor's [NUE  Loading...      ()   ] stock has increased 27 percent in the last year. Look to Nucor on the large-cap side because it is has been behind other steel companies, Parr said.

U.S. Steel's [X  Loading...      ()   ] stock has increased 71 percent in the last year. Vertical integration is the best strategy for the steel industry, Parr said. 

Reliance Steel & Aluminum's [RS  Loading...      ()   ] shares have increased 31 percent in the last year. A shortage in raw materials is another reason steel is a hot pick right now, Parr said. General industrialization will keep the demand high.

Olympic Steel [ZEUS  Loading...      ()   ] stock has increased 161 percent in the last year. Look to Asia for increased demand, Parr said.

Steel Dynamics [STLD  Loading...      ()   ] stock has increased 83 percent in the last year.

Disclosures:

Disclosure information was not immediately available for Mark Parr and his company.

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