Steel is one of the most crucial commercial goods that is in stronger demand for everything from automobiles, trucks, ships, appliances as well as for construction materials and the list goes on and on.
Demand is stronger with the growing US and recovering global economies. And the wholesale price of steel is on the way up for the year to date for 2021.
In fact, the wholesale price for steel in the US futures market is up year to date by 97.51%. This is a hot market for hot-rolled steel right now.
At Top 5, we have been following the hot market for steel and have the leading US steel maker’s stock for you to trade this week.
And indeed, this stock is set for a further good quick gain in our trade this week for Top 5. We project a nice potential return in this technology stock that the world can’t operate without.
This continues our successes in our stock trades inside Top 5 with the average return on our hit stock trades at 7.63% for a total gain for hit trades running at 495.79%. And for the stock option alternatives presented for many of the stocks, the average gain for hit trades is running at 42.56%.
So, for weekly hit stock trades and stock option alternatives, these returns add up and can compound to amount to four-figure returns over the year.
The Steel Stock to Buy
United States Steel Corporation (X) is the storied Pittsburgh, Pennsylvania-based steel company. It makes and processes many different forms of steel from flat and rolled steel to tubular and other products that are demanded by many manufacturers and construction companies around the US and well beyond.
The stock has been a generally good performer with the strong demand for its product and the surge in steel prices. It is up by 35.90% so far this year in price and we see more near-term price action setting up for a nice quick gain in the share price for subscribers to Top 5.
Sales growth is really taking off the last two reported quarters. The first quarter resulted in a gain of 43.40% and the second quarter followed up with a similar impressive gain of 37.40%. And expectations for the last quarter to be reported is for similar gains in sales.
Costs for making steel including labor and ores as well as for power to make its core products are all on the ascent. But the company continues to expand its margins with prices to match its costs for gross income growth of 19.05% for the latest quarter.
The key now is that the market for steel is tight with ample to rising demand and the companies making it are in the driver’s seat. This makes United States Steel Corporation a great short-term trading opportunity right now for Top 5.
Here is our latest analysis for the stock trades and how it sets up for this week:
The trade to make for United States Steel Corporation is to buy the shares and hold it for the target price of $24.27. From the current price of around $22.86, it represents a potential cash gain on the shares of 6.17% for a short-term trade. And for safety, we have a stop at $20.11.
Keep on Trading,
Editor, Top 5
P.S. This is a great pick, but it’s still only one out of my Top 5. To find out about the rest of the trades I’m recommending, complete with specific entry and exit points, you need to click here and join me on the Top 5 journey…