So far the fourth quarter is showing promise with earnings set to attain the highest level in eight quarters. The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. (Read more: All-Time Record Earnings in Q4).
The steel industry continues to benefit from the sustained demand in the automobile and construction sectors. Further, steel market conditions in the U.S. have improved of late, driven by favorable developments on steel trade cases in the recent past. However, the economic slowdown in China, and the continued weakness in the manufacturing sector will remain headwinds.
The steel industry falls under the broader Basic Materials sector which is among the 16 broader Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. As per our projections, taking into account the companies that are yet to report, the sector’s earnings are anticipated to rise 4.5% in the quarter.
Let’s take a peek at three steel companies that are gearing up to report their numbers this week.
ThyssenKrupp AG (TYEKF - Free Report) is one of the world's largest steel producers, and also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. It is expected to release its fourth-quarter 2016 results around Feb 9. In the last reported quarter, the group’s sales declined year over year while net income more than doubled.
The company expects improvement in material prices to benefit earnings in the fourth quarter.
Our proven model does not conclusively show that ThyssenKrupp is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though ThyssenKrupp’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past three months, ThyssenKrupp has outperformed the Zacks categorized Steel Producers sub industry. The stock has risen 12.4% outpacing the sub industry’s gain of 8.5%.
Stainless and specialty steel products manufacturer, Aperam (APEMY - Free Report) , is scheduled to report fourth-quarter numbers on Feb 9. In the last reported quarter, the company reported a massive surge of 141% in earnings despite a 9% dip in revenues.
In the past three months, Aperam has underperformed the Zacks categorized Steel Producers sub industry. The stock has risen 6.2% falling behind the sub industry’s gain of 8.5%.
As the market conditions are on the rebound in Europe, Aperam is well poised to deliver solid results owing to strong focus on operational excellence and value strategy.
The combination of Aperam’s Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into an earnings announcement.
Cliffs Natural Resources Inc. (CLF - Free Report) is a producer of iron ore pellets in North America and a supplier of metallurgical coal to the global steelmaking industry. It is scheduled to release fourth-quarter 2016 results before the opening bell on Feb 9. In the third quarter, the company had reported a loss while revenues declined 7%.
Cliffs Natural Resources Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
So far the fourth quarter is showing promise with earnings set to attain the highest level in eight quarters. The earnings growth graph so far has been encouraging in this quarter with total 55% of the companies in the S&P 500 logging growth of 6.9%. Taking into consideration the estimates from the still-to-come 225 index members, total earnings in the quarter are now expected to be up 6.8% year over year on the back of 3.9% higher revenues. (Read more: All-Time Record Earnings in Q4).
The steel industry continues to benefit from the sustained demand in the automobile and construction sectors. Further, steel market conditions in the U.S. have improved of late, driven by favorable developments on steel trade cases in the recent past. However, the economic slowdown in China, and the continued weakness in the manufacturing sector will remain headwinds.
The steel industry falls under the broader Basic Materials sector which is among the 16 broader Zacks sectors. The 65% of the companies in this sector that have reported so far have put up a 9.6% increase in earnings. As per our projections, taking into account the companies that are yet to report, the sector’s earnings are anticipated to rise 4.5% in the quarter.
Let’s take a peek at three steel companies that are gearing up to report their numbers this week.
ThyssenKrupp AG (TYEKF - Free Report) is one of the world's largest steel producers, and also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. It is expected to release its fourth-quarter 2016 results around Feb 9. In the last reported quarter, the group’s sales declined year over year while net income more than doubled.
The company expects improvement in material prices to benefit earnings in the fourth quarter.
Our proven model does not conclusively show that ThyssenKrupp is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though ThyssenKrupp’s Zacks Rank #3 increases the predictive power of the ESP, its 0.00% ESP makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past three months, ThyssenKrupp has outperformed the Zacks categorized Steel Producers sub industry. The stock has risen 12.4% outpacing the sub industry’s gain of 8.5%.
Stainless and specialty steel products manufacturer, Aperam (APEMY - Free Report) , is scheduled to report fourth-quarter numbers on Feb 9. In the last reported quarter, the company reported a massive surge of 141% in earnings despite a 9% dip in revenues.
In the past three months, Aperam has underperformed the Zacks categorized Steel Producers sub industry. The stock has risen 6.2% falling behind the sub industry’s gain of 8.5%.
As the market conditions are on the rebound in Europe, Aperam is well poised to deliver solid results owing to strong focus on operational excellence and value strategy.
The combination of Aperam’s Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% makes an earnings beat unlikely this quarter. Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into an earnings announcement.
Cliffs Natural Resources Inc. (CLF - Free Report) is a producer of iron ore pellets in North America and a supplier of metallurgical coal to the global steelmaking industry. It is scheduled to release fourth-quarter 2016 results before the opening bell on Feb 9. In the third quarter, the company had reported a loss while revenues declined 7%.
Cliffs Natural Resources Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on CLF - FREE
Get the latest research report on TYEKF - FREE
Get the latest research report on APEMY - FREE