Steel stocks have surged higher since hitting 2017 lows in June and look set to challenge rally highs put in place following the post-election buying spree. Ohio-based AK Steel Holding Corporation (AKS Ak Steel Holding Corp AKS 5.88 +3.34%) has lagged badly during the summer bounce but could now play catch-up, joining its peers in a slow but steady uptrend that could last for several years. As a result, getting in on the ground floor could offer outsized returns for bottom fishers with long-term holding periods.
The fate of AK Steel is tied closely to the U.S. automobile industry, with that sector surging higher after Hurricane Harvey flooded Southeast Texas, destroying an estimated 500,000 automobiles that will require replacement in the coming months. Add the possibility of tariffs to protect the U.S. steel industry, and the group has the right chemistry to build on gains through the rest of 2017 and beyond. (See also: AK Steel Earnings and Revenues Beat Estimates in Q2.)
AK Steel could play catch-up, with the hurricane’s destruction generating intense demand for new automobiles. …read more
Read more here: AK Steel Stock Could Reward Bottom Fishers
Category: AKS, SLX