Commodities & Metals

Why the Downside of Tariffs May Not Kill the Upside for US Steel Giants

Worthington Industries Inc. (NYSE: WOR) was at $44.87. Since last Wednesday, the stock has risen as high as 3.7%, but it now is up just 1.4%. The 52-week range is $39.52 to $53.27, and the consensus analyst target is $49.50. Its market cap is $2.8 billion.

Allegheny Technologies Inc. (NYSE: ATI) traded at $27.09. Since last Wednesday, the stock has risen as high as 5.2%, though it is up 4.6% now. Allegheny Tech has a 52-week range of $14.54 to $30.25. The consensus price target is $33.00, and the market cap is $3.4 billion.

Alcoa Inc. (NYSE: AA) was at $46.37. The stock has risen as high as 4.0% since last Wednesday. Now it is up 3.2%. The 52-week range is $29.55 to $57.50, and consensus price target is $61.64. Its market cap is $8.6 billion.

Arconic Inc. (NYSE: ARNC) recently traded at $24.51. Since last Wednesday, the stock has risen as high as 1.1% but now is up just 0.5%. Arconic has a 52-week range of $21.76 to $31.17. The consensus price target is $30.43. The market cap is $11.8 billion.

Commercial Metals Co. (NYSE: CMC) was last seen at $25.40. Since last Wednesday, shares have risen as high as 7.1%, but now they are up 4.5%. The 52-week range is $17.05 to $26.72, and the consensus price target is $26.63. Its market cap is $3.0 billion.

Cleveland-Cliffs Inc. (NYSE: CLF) was trading at $7.67. Since Wednesday, the stock has risen as high as 16.2%, but now it is up 9.0%. Cleveland-Cliffs has a 52-week range of $5.56 to $10.08 and a consensus price target of $8.00. Its market cap is $2.3 billion.

AK Steel Holding Corp. (NYSE: AKS) was recently seen at $5.55. Since last Wednesday, the stock has risen as high as 13.2%. Now it is up 7.6%. Shares have traded in a 52-week range of $4.00 to $8.65. The consensus price target is $6.39, and the market cap is $1.7 billion.

Schnitzer Steel Industries Inc. (NASDAQ: SCHN) traded at $34.00. Since Wednesday, the stock has risen as high as 3.5% but now is just flat. The 52-week range is $17.50 to $38.85, and the consensus price target is $36.50. It has a market cap of $896.6 million.

Timkensteel Corp. (NYSE: TMST), which was trading at $16.81, has risen as high as 5.5% since last Wednesday. Now it is up just 2.8%. The 52-week range is $12.48 to $20.97, and the market cap is $746.7 million. Its consensus target price is $18.63.

Kaiser Aluminum Corp. (NASDAQ: KALU) was trading at $103.27. Since last Wednesday, the shares have risen as high as 4.4%, but now they are up 2.9%. The stock has a 52-week range of $74.56 to $116.86 and a consensus price target of $108.14. The market cap is $1.7 billion.

Century Aluminum Co. (NASDAQ: CENX) traded at $19.96. Since last Wednesday, the stock has risen as high as 14.6% but now is up 4.8%. Shares have traded between $11.26 and $24.77 in the past year. Analysts have a consensus price target of $19.40. The market cap is $1.7 billion.

It is important to understand that tariffs act to protect a company’s business within a home country. If a trade war erupts with retaliatory tariffs as a result, then the gains primarily only help the companies that actually are focused on the domestic market and they will be the winners. Of course, trade wars are rarely viewed as a good thing in the history books.