The Trump administration recently integrated import duties on certain types of Vietnamese Steel made from Chinese imports that the government felt was circumventing the anti-dumping duties imposed on Chinese steel. Trump’s opposition to using Chinese steel, coupled with his promise to boost manufacturing, bodes well for the U.S. steel industry. The president plans to put 1.5 trillion dollars into infrastructure. In addition, relaxed regulations and corporate tax cuts promise to make the materials sector prosperous. (See also: Trump’s Wall Could Be Great News for Steel Stocks.)
All this will help the steel industry, and indeed, companies focused primarily on steel have been gaining over the last twelve months. Here are four that appear poised for future gains.
Note: These stocks were chosen based on industry focus, U.S. business, market cap and return. Data is reported as of February 13, 2018.
Nucor Corporation (NUE)
- Avg. Volume: 3,002,214
- Market Cap: $20.35 billion
- EPS (TTM): $4.10
- Dividend Yield: 2.46%
- Price: $64.11
- 1y Target Est: $73.15
Nucor is the largest steel manufacturer in the U.S. by market cap at $20.35 billion. The company is a leading U.S. steel provider with its headquarters in Charlotte, North Carolina. Its operations include steel mills, steel products and raw materials. It is heavily involved in construction, which positions Nucor to profit from Trump’s focus on infrastructure. Its connections in the construction of highways, bridges, hospitals, schools and airports put it squarely in the sights of Trump’s building plans. In addition, Nucor has a strong presence in the auto industry and the energy sector. This is no newcomer to the steel business. The company dates back to 1940.
The stock is trading at $64. It has a 1 year return of 6.50% as of 2/13/18.
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