Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

AK Steel Poised On Strategic Actions Amid Pricing Pressure

ByZacks Investment Research
Published 11/23/2017, 06:39 AM
Updated 07/09/2023, 06:31 AM
AKS_old
-
KOP
-
WLK
-
NGVT
-
We issued an updated research report on AK Steel Holding Corporation (NYSE:AKS) on Nov 22.
The steel maker missed earnings and sales estimates in third-quarter 2017. The company reported adjusted earnings of 2 cents per share for the quarter, missing the Zacks Consensus Estimate of 3 cents.
The company recorded net sales of $1,494.3 million for the quarter, up 2.8% from the year-ago quarter. However, sales missed the Zacks Consensus Estimate of $1,504 million.
Shares of AK Steel have declined 16.6% in the last six months, underperforming the industry’s 12.5% growth.
AK Steel is expected to benefit from strong demand in the automotive market. AK Steel remains focused on expanding its core automotive business and is laying importance on de-emphasizing commoditized products and launching new value-added products. The company is currently developing third-generation, advanced high-strength carbon steels for automotive customers that are considerably stronger than current product offerings.
AK Steel, in August, completed the acquisition of Precision Partners Holding Company for $360.9 million in cash. The buyout combines AK Steel’s innovation in materials and metals-forming and Precision Partners' tooling and stamping technology and advanced capabilities. The acquisition is in sync with AK Steel's commitment to broaden its portfolio of high-value products and processes and reinforces collaboration with the company’s automotive market customers.
The company’s sustained initiative to manage costs amid a challenging operating environment is also expected to lend support to its bottom line. AK Steel is looking for cost-saving opportunities in 2017 through a number of means including process improvement, headcount cuts, reduction in process time and procurement activities.
However, AK Steel is exposed to raw material pricing pressure. Electrical steel prices also remain under pressure in overseas markets due to global overcapacity. Moreover, the U.S. market is still seeing high levels of imports of steel products. Some additional headwinds are expected to come from spending associated with planned maintenance outages.
AK Steel Holding Corporation Price and Consensus

AK Steel Holding Corporation Price and Consensus | AK Steel Holding Corporation Quote

Zacks Rank & Stocks to Consider

AK Steel currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Ingevity Corporation (NYSE:NGVT) , Koppers Holding Inc. (NYSE:KOP) and Westlake Chemical Corporation (NYSE:WLK) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has expected long-term earnings growth of 12%. Its shares have gained 37% year to date.

Koppers Holding has expected long-term earnings growth of 18%. Its shares have rallied 20.4% year to date.

Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 69.3% year to date.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>



Koppers Holdings Inc. (KOP): Free Stock Analysis Report

Westlake Chemical Corporation (WLK): Free Stock Analysis Report

Ingevity Corporation (NGVT): Free Stock Analysis Report

AK Steel Holding Corporation (AKS): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.