These 3 Metals Stocks Just Hit New Highs

There are 2 important points to make about these 3 steel stocks: 1) they’re historically cheap as measured by the classic Benjamin Graham valuation metrics such as “price-earnings ratio” and “past 5 year earnings record” and “do they pay a dividend?” And 2) last week each of these stocks showed price strength by hitting higher highs.

You don’t see this kind of combination too often, where the fundamentals line up correctly and the price breakout higher is a positive from a chart analysis view. That’s why it might be valuable to take a slightly closer look at the companies, all of which happen to be in the metals sector

Commercial Metals.

This steel stock is trading at the highest level it’s ever seen. The Irving, Texas-based operation has a price-earnings ratio of 8.52 and trades at 1.9 times book value. Earnings this year increased by 46.40% and the 5-year EPS rate of growth is 44.80%.

Wall Street analysts are not expecting that kind of stellar growth for the coming year. A lot depends on “supply crunch” concerns stemming from the war in Ukraine. CMC’s earnings will be announced on 3/17. The company pays a 1.39% dividend.

The weekly price chart for Commercial Metals
CMC
looks like this:

Here’s the GuruFocus.com summary of its financials:

Teck Resources.

It’s a mining company with headquarters in Vancouver, British Columbia. Teck operates in Canada as well as worldwide. The price-earnings ratio is 10 and the price to book ratio is 1.23.

This year’s earnings are up by an astonishing 428.30%. EPS growth for the past 5 years comes in at 24.10%. Last week, Goldman Sachs’ analysts raised their rating on the stock from “neutral” to “buy.” Teck pays a $.38% dividend.

This is the weekly price chart for Teck Resources:

The GuruFocus.com summary of its financials is here:

United States Steel Corp.

One of the oldest names in the steel business — it’s been around since 1901 — shares in the Pittsburg, Pennsylvania-based company can be purchased right now at its book value.

The stock trades with a price-earnings ratio of just 2.28. Earnings per share are up this year by 351% and the past 5 years of EPS growth comes to 48.80%. Investors are paid a dividend of $.20/share for an annualized yield of .60%.

The weekly price chart for U.S. Steel looks like this:

A summary of U.S. Steel’s financials by GuruFocus.com is here:

No guarantees exist, of course, and upward movement could reverse at anytime for a number of reasons. It’s worth considering, on the other hand, the unusual combination of desirable valuation and the steady rise in stock price for each of these.

Not investment advice. For educational purposes only.

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