Steel Dynamics, Inc. (NASDAQ:STLD): This mini-mill producer of steel products manufacturers flat-rolled steel, structural steel, and special bar-quality steel and rails. It is also one of the nation’s largest metal recyclers and makes girders and decking for non-residential buildings.
Standard & Poor’s forecasts that over the medium-term, STLD will benefit from lower imports of steel and the low inventories in the industry, which should improve demand.
Steel Dynamics is is praised for its top-tier balance sheet and excellent liquidity.
S&P rates STLD stock a 5-star strong buy — its top rating — and targets the stock for appreciation to $45.
Since first highlighting STLD as a buy on Feb. 8 at $17 with a trading target of $22, it outpaced my expectations.
The stock of this relatively small but productive steelmaker appears poised to break its recent high at $40.17, supported by a double CBR Buy at $35.50. The recent high was made following a run from a breakaway gap at $28.61 to $30.60 in early-November, and since then the price accelerated, backed by huge volume and extended accumulation.
MACD is arching up — another favorable technical indicator — and the recent close above the resistance line at $37.75 is a positive development.
Buy STLD at $38 with a trading target of $45. Investors may also consider this stock for longer-term results associated with the proposed investment in a refurbished national infrastructure.
– Sam Collins, Trade of the Day
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Source: Investor Place