If there is one thing that can create an instant unilateral gain in a sector, government protection can do just that. President Donald Trump has announced new tariffs on Thursday aimed at protecting the U.S. steel and aluminum industries.
A tweet from this morning from the president:
Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!
— Donald J. Trump (@realDonaldTrump) March 1, 2018
President Trump has confirmed that tariffs would be coming, at a rate of 25% for steel imports and 10% for aluminum imports, starting in the days ahead. The president widely expected to issue new tariffs to protect steel and aluminum companies. Not all the companies had risen in anticipation of the news, but almost all of them saw their stocks rise on Thursday morning.
24/7 Wall St. has tracked multiple stocks tied to steel and aluminum, and most of them were surging on Thursday morning. That said, some lagged others, and some were not even up on the day. We have tracked how some of these companies are still down from the highs seen earlier this week, and we have also tracked longer trading history over the last year. Consensus analyst price target data came from the Thomson Reuters sell-side estimates.
The following share prices are based on reactions to the morning’s news, and they will be updated after the close of trading on Thursday.
United States Steel Corp. (NYSE: X) closed up 5.8% at $46.01, and this was a $43.50 stock earlier in the week. U.S. Steel has a 52-week trading range of $18.55 to $46.82 and consensus analyst price target of $44.23. Its market cap is $8.0 billion.
Nucor Corp. (NYSE: NUE) closed up 3.1% at $67.53, but it was trading near $68 earlier in the week. Nucor has a 52-week range of $51.67 to $70.48 and a consensus price target of $73.77. Its market cap is $21.2 billion.
Steel Dynamics Inc. (NASDAQ: STLD) closed up 4.0% at $48.10, though that’s down from $48.50 earlier in the week. The 52-week range is $32.15 to $50.70, and the consensus price target is $52.08. Its market cap is $11.1 billion.
Reliance Steel & Aluminum Co. (NYSE: RS) closed up 3.8% at $93.62, after having been up at $93.00 earlier in the week. Reliance Steel has a 52-week range of $68.46 to $95.97. Its consensus price target is $98.38, and its market cap is $6.6 billion.
Worthington Industries Inc. (NYSE: WOR) closed up 1.1% at $44.70, but it had been as high as almost $47 this week. The 52-week range is $39.52 to $53.27, and the consensus analyst target is $49.50. Its market cap is $2.7 billion.