Best Steelmakers YTD

Published on Wednesday, 22 February 2012 22:17 Written by J Hawk

The following sections discuss which of the stocks or ADRs listed in the U.S. stock markets’ steelmakers sector have demonstrated the best performance so far this year as of yesterday’s stock market close. 

Timken Co. – Up 39.0 Percent YTD

As of February 21st‘s stock market close, the top performing steelmaker stock was Timken Co. (NYSE: TKR).

The Timken Company is a world-class manufacturer of alloy steels and highly engineered bearings and their assemblies and components. The firm recently contracted with the United Steelworkers Local 1123 in Canton, Ohio for a five-year $225 million project to expand its Faircrest, Ohio steel mill.

Timken Co.’s share price was trading at the $30.71 level at the close on December 30^th of 2011, and as of February 21st, 2012, it was up 39.0 percent thus far on the year to the $53.81 level. 

Gerdau S.A. – Up 33.6 Percent YTD

The second top performing steelmaker stock was Gerdau S.A. (NYSE: GGB) as of February 21st‘s stock market close.

Gerdau S.A., formerly known as Companhia Siderurgica da Guanabara-Cosigua, is a Brazilian holding company which manufactures and sells steel products and is the largest long steel producer in the Americas. The firm and its subsidiaries manufacture flat and long steel and steel products using electrical furnaces. The company recently reported shipments totaling 19.2 million tons for 2011, a 10 percent increase from 2010.

Gerdau S.A.’ ADR price closed at the $7.81 level on December 30^th of 2011, and as of February 21st, 2012, they were up 33.6 percent thus far on the year to close at the $10.43 level. 

Companhia Siderurgica Nacional – Up 27.0 Percent YTD

Third in the list of five top performing steelmaker stocks as of February 21st‘s stock market close is Companhia Siderurgica Nacional (NYSE: SID).

Companhia Siderurgica Nacional is the second largest Brazilian steel producer, specializing in the production and sale of carbon steel.  The company recently reported a 12% increase in year over year fourth quarter earnings.

Companhia Siderurgica Nacional’s ADR price closed at the $8.18 level on December 30^th of 2011. By the market close on February 21st, 2012, Companhia Siderurgica Nacional’ ADRs were up 27.0 percent thus far on the year to the $10.39 level. 

Mechel OAO – Up 25.9 Percent YTD

The fourth stock in the list of five top performing steelmaker stocks as of February 21st‘s stock market close is Mechel (NYSE: MTL).

Mechel is the largest producer of special steel products in Russia, and the mining and metal production firm also generates coking, steam coal and iron ore concentrates. As one of Russia’s largest companies, the Moscow based firm’s ADRs have benefited lately from growing investor interest in that nation.

Mechel’s ADR price closed at the $8.50 level on December 30^th of 2011. At the market close on February 21st, 2012, the ADRs were up 25.9 percent thus far on the year to the $10.70 level. 

A.M. Castle and Co. – Up 22.3 Percent YTD

The final stock listed among the top five performing steelmaker stocks as of February 21st‘s stock market close is A.M. Castle and Co. (NYSE: CAS).

A.M. Castle and Co. is an international specialty metal and plastic product distributor, focusing on supplying durable equipment manufacturers.  Its shares became undervalued due to higher than anticipated financing costs for its Tube Supply acquisition and have been correcting higher early this year.

A.M. Castle and Co.’ share price closed at the $9.46 level on December 30^th of 2011.  As of February 21st, 2012, the stock was up 22.3 percent so far on the year to close at the $11.57 level.