Buy, Sell or Hold: Stelco Holdings Inc. (STLC-T) — Stock Predictions at Stockchase

TSE:STLC

38.39

0.17 (0.44%) 1d

Showing 1 to 15 of 37 entries

VAGUE

It is cyclical and has done well with the good commodities cycle. Had a beat on earnings. It is in the right spot as metals will do well in April. Has a high debt load. Be cautious and maybe sell some for profits.

DON'T BUY

Finished product (steel) STLC vs. commodity (iron ore) LIF? He'd choose LIF; he owns it for income. STLC is an operating company; whereas LIF is a topline royalty company (gets paid on topline, not bottom line), operating for 50+ years, less operating leverage. Both steel and iron ore have rolled over. More downside for steel. Iron ore has already corrected back. LIF is the safer play, with a yield of 24%, partially due to special dividends. Yield is 2% for STLC, and the CEO has been a major seller.

DON'T BUY

It's in capable hands now (it dodged bankruptcy in its history). They've removed legacy costs and are benefitting now from high steel costs. They're also buying back shares, but also from insiders which raises a yellow flag. Also, steel prices don't last forever, and Trump's old tariffs may fall. For these reasons, he's taking a pass. Too risky.

COMMENT

He got out of it a couple of months ago. The price of steel was unsustainable. Earnings are going to drop. Stelco is at an unsustainable valuation. It has come off and he might take a look at it again.

BUY on WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The pullback gives an interesting opportunity. The markets are worried about the stimulus bill and China. It is very cheap and is in a new cash position. If there is no reversal in global growth, which is unlikely, the stock has a good chance of decent recovery. Unlock Premium - Try 5i Free

BUY

A steelmaker, and steel prices are hot. There are supply issues with steel, so now is a golden time to own STLC. Steel stocks haven't corrected like mining stocks, so maybe a correction will come. These are trading stocks, not long-term holds.

HOLD

He bought it after he met management, of whom he was really impressed. The company is a huge beneficiary of the shortage of steel around the world with the price of steel going up five-fold. The issue is that steel prices are unsustainably high for the long term. He has been selling as it goes up. This is a temporary strength.

BUY

Close to $19 EPS this year. Paying down debt quickly. Pulled back to $43. With the demand for infrastructure plus capital spending, it's hard to see how steel companies won't do very, very well.

COMMENT

Thinks there is a play in steel, although this is no longer early. Would play the steel play through ZMT. Stelco is a good name here although it has already had a good run. 10% range correction is possible. Use the past corrections as a guideline for entry.

SELL ON STRENGTH

He bought it early last year, because they opened a new furnace in Hamilton. Fundamentally, they're basking in higher steel prices, but can they stay high? The new furnace expands their margins a lot. Sell at high-30s/low-40s, because this is a cyclical stock.

PARTIAL SELL

They will generate huge cashflow. Not sure if the steel prices are sustainable at these prices. China is easing back from growth so this could hurt steel prices. Private equity that brought back STLC to market is selling some now. Earnings in 2022 will be lower than 2021 due to peaking. Gets nervous about paying a high premium.

BUY

The commodity price is always going to be the main driver. She has been adding to her position. There is a lot of good things happening at the company.

TOP PICK

A recovery opening trade. They reported some hedging losses that initially caused a sell off. The next few quarters will be very, very strong. They are a low cost producer. The do not have a peak multiple so there is upside there. (Analysts’ price target is $28.50)

STRONG BUY

China buys a huge amount of steel and iron ore, so this will benefit Stelco and those commodity prices. The current CEO is very good. This has huge upside with strong real estate value. Will produce strong cash flow to the point that he predicts the dividend to return.

TOP PICK

It has had a great run but he sees more upside. Steel prices this coming winter are in the $800/tonne range which is higher than they have been in years. They are going to be one of the lowest cost steel producers. He sees it doubling from here over the next couple of years. (Analysts’ price target is $18.40)

Showing 1 to 15 of 37 entries

Stelco Holdings Inc.(STLC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 9

Stockchase rating for Stelco Holdings Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Stelco Holdings Inc.(STLC-T) Frequently Asked Questions

What is Stelco Holdings Inc. stock symbol?

Stelco Holdings Inc. is a Canadian stock, trading under the symbol STLC-T on the Toronto Stock Exchange (STLC-CT). It is usually referred to as TSX:STLC or STLC-T

Is Stelco Holdings Inc. a buy or a sell?

In the last year, 9 stock analysts published opinions about STLC-T. 4 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Stelco Holdings Inc..

Is Stelco Holdings Inc. a good investment or a top pick?

Stelco Holdings Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Stelco Holdings Inc..

Why is Stelco Holdings Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Stelco Holdings Inc. worth watching?

9 stock analysts on Stockchase covered Stelco Holdings Inc. In the last year. It is a trending stock that is worth watching.

What is Stelco Holdings Inc. stock price?

On 2022-05-20, Stelco Holdings Inc. (STLC-T) stock closed at a price of $38.39.

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