Steel stocks are breaking out and becoming a steal as global supply becomes scarce. So which names are leading the pack?
Steel, unlike gold, is a true commodity, Guy Adami said. Steel companies have pricing power and can benefit from strong global demand. U.S. Steel , which Goldman Sachs just upgraded to ‘buy’ from ‘neutral’ could go as high as $150 on this thesis, according to Guy.
Tim Seymour agreed that the infrastructure and global build out boom is far from over. In addition to the steel names, he sees buying opportunities in iron ore – particularly Vale .
Pete Najarian would extend it further to the coal names, which, even though they’ve taken a beating as of late, have the opportunity to come back on the heels of the steel bull market.
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