The steel index has doubled over the past year. So should investors buy steel now or is it too late? Mark Parr, managing director at KeyBanc Capital Markets, discussed his views on the metals.
“We would continue to look for the steel sector to experience higher lows and higher highs as we move through 2010,” Parr told CNBC.
Parr said although there had been some profit taking in the group last week, the weakness is an “excellent” buying opportunity, particularly for shares of U.S. Steel.
“I think you should be looking at these stocks in context of where they were in '08,” he said.
“We saw some very abnormal bottoms for the group in early '09, which was in the midst of a much different macro economic environment. The group is still in the early phase of a recovery and we think there are some good places to put your money to work right now.”
Parr's Ratings and Price Targets:
Parr has a "buy" rating and a $54 price target on Reliance Steel .
He also has a "buy" rating and a $90 price target on U.S. Steel and a "hold" rating on AK Steel .
- Watch Parr's Previous Appearance on CNBC (July 29, 2009)
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CNBC Data Pages:
Other Steel Giants:
Parr does not own shares of AKS or X.
KeyBanc Capital Markets expects to receive or intends to seek compensation for investment banking services from AKS and X within the next three months.
KeyBanc has investment banking clients who own shares of RS.