STLD - Steel Dynamics: Secular Tailwinds Are Consistent With Bullish Guidance
2024-04-03 16:57:48 ET
Summary
- Steel Dynamics shares have performed well, returning over 30% in the past year and reaching a new 52-week high.
- Despite weaker results in Q4 2023, the company still generated strong profits and free cash flow, with a solid balance sheet.
- The future outlook for Steel Dynamics remains positive, with strong demand from sectors such as autos, nonresidential construction, and energy, as well as favorable political support for the steel industry.
Shares of Steel Dynamics ( STLD ) have been a solid performer over the past year, returning over 30% and sitting near a new 52-week high. The post-COVID environment has been favorable for steelmakers, and that appears set to continue through 2024. Since recommending shares in October , STLD has returned about 38%, significantly ahead of the S&P 500’s 21%. With this rally, shares have eclipsed my $140 price target, making now a natural time to reevaluate share. I remain bullish....
Steel Dynamics: Secular Tailwinds Are Consistent With Bullish Guidance