Several U.S. steel company shares could rally along with a rise in the commodity’s price, according to an article in Barron’s that also urged caution on the stocks because of historical volatility.
The price of steel has climbed to $703 per net ton, and some analysts expect it to reach near $800 or above in the next year, according to Barron’s.
The article pointed U.S. Steel Corp. (X) as the pick among big producers but urged investors to stick with a one-year time horizon and to watch steel and iron prices.
Commercial Metals Co. (CMC) and Steel Dynamics Inc. (STLD) were other inexpensive stocks that benefit from defensive positions as low-cost producers, according to the article.
A pricier option is Nucor (NUE). "It’s a low-cost, scrap-based steel maker, too, but it trades at a higher valuation," Barron's said.
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