Steel Might Finally Begin to Regain Its Strength
Coming out of the recession, steel companies expanded margins at an impressive rate. Unfortunately for investors, the past year and a half hasn't been nearly as kind. Oversupply has dealt the price of steel a meaningful blow. Are prices finding a trough? That's what companies like Nucor seem to believe. Looking at the results of its peers hints at the same.
For this belief to gain some traction, several industries that require a large portion of the steel supply must either continue growing at current levels or pick up the pace altogether. Despite some high multiples (more from low earnings than anything else), these companies might actually provide some value. This is exactly why Motley Fool analysts Taylor Muckerman and Joel South went digging through the earnings results and conference calls in the hope of discovering if these companies might actually be true value plays at the moment. Drop in on their discussion by clicking on the video below.
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The article Steel Might Finally Begin to Regain Its Strength originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.