WOR - Worthington Steel: A Strong Start Post Separation

2024-03-26 12:14:02 ET

Summary

• Worthington Steel shares have seen volatile trading since its separation from Worthington Enterprises in December.
• The company is a premium steel processor with a focus on the automotive market, but also serves other industries.
• Worthington Steel posted strong third-quarter results, but caution is advised due to the cyclical nature of the industry and volatility induced by inventory gains/losses.

Shares of Worthington Steel, Inc. ( WS ) have seen some volatile trading action post its separation from its former parent company Worthington Enterprises, Inc. ( WOR ) which took place in December of last year. A stronger quarter, driven by inventory gains, has made investors upbeat. I am cautious to extrapolate near-term and volatile quarterly results into the future....

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