Bull of the Day: AK Steel (AKS) - Bull of the Day
19 3월 2014 - 4:07PM
Zacks
It wasn’t long ago when steel stocks were a guaranteed way to
lose money in the market. This sector is famously sensitive to the
world economy. Steel is the backbone of products that generally fit
into the durables space or construction. When the economy stalls,
individuals, corporations and governments don’t make investments in
this space, thereby hurting worldwide steel demand.
Now add the glut of cheap Chinese steel supply into the equation
and the deck is stacked against you. That’s exactly what steelmaker
AK Steel (AKS) had to deal with. As a result, last
year’s numbers were ugly, very ugly. In fact, last year AK Steel
lost 24 cents per share.
Well the past is the past and this year AK looks like a bona
fide turnaround story for the ages. Estimates for this year call
for AK to make between 30 cents and $1 per share. Analysts have
been so bullish on the stock that in the last 60 days ten different
analysts raised their estimate for the current year, and seven
raised estimates for next year.
The story has been so good recently that AK Steel has surprised
earnings to the upside by an average of 57% over the last 4
quarters. Early this week, news came that AK’s lenders decided to
extend its $1.1 billion credit facility through March 2018, when it
had been set to expire in April 2016. These are all signs that
things are going well over at AK Steel.
A look at the price and consensus chart details the turnaround
story. From 2009 to 2013, estimates were continually slashed for
AK, helping send the stock on a rocky downward trajectory. It does
appear, however, that the story is changing and growth is finding
its way back into the AKS picture. If the earnings picture stays
positive, this $6 stock could see double digits in a
heart-beat.
![](http://static.zacks.com/images/zacks/blogs/1395172979_scaled_425.jpg)
The technical picture is setting up nicely for those that can be
patient. The chart screams momentum as this was a $3 stock a short
year ago. Since then we have seen a furious rally all the way up
above $8 before settling down in the trading range just above $6
this year. The 25 day moving average shifted to the right by 5
(25x5 SMA) provided support throughout the entire bull run off the
bottom. Recently price has found itself under this 25x5 SMA and has
had a tough time rallying above it.
Currently AKS is hanging around the 38.2% Fibonacci retracement
level from the lows last April to the high in late December. This
is a good sign for the stock as it shows there are plenty of buyers
camped out above $5. Any day now, you could see a break above the
25x5 on heavy volume which would give you a technical buy signal on
this stock with sound fundamentals.
![](http://static.zacks.com/images/zacks/blogs/1395173038_scaled_425.jpg)
AK STEEL HLDG (AKS): Free Stock Analysis Report
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AK Steel (NYSE:AKS)
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부터 6월(6) 2024 으로 7월(7) 2024
AK Steel (NYSE:AKS)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024