TX - Ternium: +236% YoY Might Be Just The Beginning

• Expectations of Ternium's 3Q EBITDA and sales seem very modest, which means either an early estimates revision or a beating of these estimates at the end of this quarter.
• Any of these events will turn out to be a red rag for the bulls.
• Industrial markets, which are key for the company, are recovering, and steel prices are steadily climbing up.
• There are some concerns regarding automotive sector. But TX was able to deal with the decline in production of this sector in the breakdown quarter - I see no reason why it won't be doing so during 3Q and 4Q.
• I believe the growth of quotes by ~236% over the past year is far from the limit for Ternium S.A. That's why I recommend buying TX at current price levels.

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