Analysts begin favoring US-based steel stocks

The time may be right to buy stock in companies in the long-beaten down steel sector in the United States, according to some investment analysts.

An online write-up by analyst Richard Saintvilus on TheStreet website says shares in AK Steel, West Chester, Ohio, are “safe to buy again because they are poised to reclaim $5 to $5.20 per share, delivering 10 percent to 15 percent gains.”

Saintvilus says the recent plunge in the steel producer’s stock share was somewhat “unfair,” as its reduced earnings were attached to an overall commodities and steel slump rather than any mismanagement.

Fellow TheStreet contributor Rachel Aldrich sees similar fundamentals at work in the future of Pittsburgh-based United States Steel Corp. (U.S. Steel).

She reports that shares of U.S. Steel stock rose sharply Wednesday, July 6, 2016, and that Deutsche Bank has upgraded U.S. Steel shares from “sell” to “hold.”

The report from Aldrich also indicates, contrarily, that Deutsche Bank has not granted the same upgrade to AK Steel, which it still sees as producing “disappointing return on equity.”