Top five steel stocks to explore in March: NUE, CMC, HAYN, TX & RYI

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Top five steel stocks to explore in March: NUE, CMC, HAYN, TX & RYI

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 Top five steel stocks to explore in March: NUE, CMC, HAYN, TX & RYI
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Highlights

  • Nucor Corporation (NYSE: NUE) has a P/E ratio of 6.36. On January 12, 2022, Nucor announced plans to build a new state of the art sheet mill in West Virginia.
  • Commercial Metals Company (NYSE: CMC) has a P/E ratio of 7.81, dividend yield of 1.53%, and an annualized dividend of US$0.56.
  • Haynes International, Inc. (NASDAQ: HAYN) will release its first-quarter 2022 results on January 27, 2022. Its dividend yield of 2.2%.

The steel industry is one of the key pillars of the economy. The sectoral companies produce steel, the basic building material for any large or small construction projects. 

Generally, these enterprises do well when the economy is growing. The US and the UK share strong bilateral steel trade, although tariff disputes crop up sometimes.  

Last year, Britain had complained about the high US tariff imposed by the previous Trump administration. It had clamped 25% and 10% tariffs on steel and aluminum, respectively.

Trump had raised the tariffs, citing protection for US producers from subsidized imports.

Fast forward to now, the Russia-Ukraine war has roiled the commodities market. With no sign of the crisis ebbing soon, prices of many commodities have soared in the global market. But it provides a unique opportunity to firms ridden with high debt to narrow the balance sheet. 

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Here we will discuss five steel stocks that generated good returns in one year.

Nucor Corporation (NYSE: NUE)

Charlotte, North Carolina-based Nucor Corporation manufactures steel products. Its operating business segments include steel mills, steel products, and raw materials.

On January 12, 2022, Nucor announced plans to build a new state of the art sheet mill in Mason County, West Virginia, a strategic location on the Ohio River for transportation and logistics.  

The company has a market capitalization of US$34.65 billion and a P/E ratio of 5.5. Its forward P/E for one year is 6.84.

The company's net sales rose 97% YoY to US$10.36 billion in Q4, FY21, while its net earnings came in at US$2.34 billion, or US$7.97 per diluted share. For fiscal 2021, the company's net sales rose 81% YoY to US$36.48 billion.

The stock traded in the range of US$140.25 to US$64.32 in the last 52 weeks. It traded at US$130.17 at 10:38 am ET, up 3.34% on March 9.

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(Top steel stocks with positive return in one year)

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 Commercial Metals Company (NYSE: CMC)

Irving, Texas-based CMC operates steel fabrication plants, steel mills, and metal recycling facilities in the US and Poland. It manufactures structural steel and rebar used in construction.

Its current market capitalization is US$4.71 billion, the P/E ratio is 8.15, and the forward P/E for one year is 7.81.

Its dividend yield is 1.53%, with an annualized dividend of US$0.56.

 The company will report its second quarter fiscal 2022 results on March 17, at 11 am ET.

The company posted net sales of US$1.98 billion for the three months ended November 30, 2021, compared to US$1.39 billion for the same period a year ago.

 Its net income came in at US$233 million or US$1.90 per share diluted compared to US$64 million or US$0.53 per share diluted for the three months ended November 30, 2020. 

The stock traded in the range of US$$40.56 to US$26.98 in the last 52 weeks. Its price was up 1.07% to US$38.84 at 10:41 am ET on March 9.

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Haynes International, Inc. (NASDAQ: HAYN)

Haynes International Inc is based in Kokomo, Indiana, and produces high-performance nickel and cobalt-based alloys. The product comes in flatforms such as sheet, plate, and coil.

It manufactures advanced alloys used in industrial gas turbines, chemical processing, aerospace, and other industries. 

For the first quarter ended December 31, 2021, its revenue was US$99.43 million versus US$72.17 million in the year-ago quarter. The net income was US$4.65 million or US$0.37 per diluted share, compared to a net loss of US$8.02 million or US$0.65 per share diluted in Q1, FY21.

The company has a current market capitalization of US$486.23 million, forward P/E ratio for one year is 18.45. With a dividend yield of 2.18%, it has an annualized dividend of US$0.88.

The stock traded in the range of US$47.08 to US$26.82 in the last 52 weeks. Its price was up 1.94% to US$39.50 at 10:46 am ET on March 9. 

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Ternium S.A. (NYSE: TX)

The Luxembourg-based company produces flat steel products and iron ore and are sold to steel manufacturers, processors, and end-users. Its two business segments are Steel and Mining. 

The company's net sales decreased by 6% YoY to US$4.32 billion in Q4, FY21, while its profit for the period came in at US$1.13 billion. For fiscal 2021, its net sales rose 84% YoY to US$16.09 billion.

The company has a market capitalization of US$7.63 billion. Its P/E and forward P/E for one year is 2 and 4.12, respectively. The company has a dividend yield of 2.04% and an annualized dividend of US$1.80.

Its stock touched the highest and the lowest of US$56.86 and US$32.46, respectively, in the last 52 weeks.

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 (Top steel stocks with more than 60% return in one year)

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Ryerson Holding Corporation (NYSE: RYI)

Ryerson Holding processes metal coil, sheet, plates, bar, tubes, etc. It is also engaged in fabrication and supply chain services. 

The company has a market capitalization of US$1.17 billion, a P/E ratio of 4.07 and a forward P/E for one year of 10.00. The company paid an annualized dividend of US$0.40, and the dividend yield stands at 1.32%.

The company's revenue surged 79.8% YoY to US$1.53 billion in Q4, FY21, while its attributable net income came in at US$106.4 million, or US$2.71 per diluted share. For fiscal 2021, the company reported a revenue of US$5.67 billion.

The stock traded in the range of US$33.39 to US$13.39 in the last 52 weeks. Its price rose 4.41% to US$30.79 at 11:02 am ET on March 9. 

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Bottomline

The NYSE American Steel Index returned 20.15% gains in one year, while S&P 500 Index gave an 9.14% return in the same period. However, investors should apply due diligence before investing in the stock market. 

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