Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy) on Feb 12, 2013.
Why the Upgrade?
Posco is the world's third largest steelmaker on the basis of
output and currently has a market capitalization of approximately
$25 billion. Long-term prospects are compelling for this Korean
steelmaker, making it an attractive investment option.
Global steel demand is likely to grow by 3% year over year in
2013; being largely pushed by restocking activities in China and
strong demand from the U.S, India and Southeast Asian countries.
To leverage from the growing demand, the company has been
expanding its operations in the domestic market as well as in the
international arena, especially the fast growing and emerging
markets worldwide. Moreover, higher proportion of value-added
products like cold-rolled steel, automotive steel plates and
electric steel sheets in its product mix will work in favor of
In 2012, crude steel production was at its highest level at
37.986 million tons and represented a 1.8% increase over 2011.
Finished product sales were up 1.6%; export ratio of finished
product sales was at 41.7% versus 38.6% in 2011. Demand for
finished products was strong from the Automobile end-market while
weaknesses were noticed in Home Appliances and Shipbuilding
For 2013, management expects consolidated revenue to be
approximately KRW 66 trillion. Finished product sales are
estimated to be roughly 34 million tons; crude steel production
about 37 million tons while consolidated investments are likely
to be approximately KRW 7 to 8 trillion.
COMMERCIAL METL (CMC): Free Stock Analysis
POSCO-ADR (PKX): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
CIA SIDERUR-ADR (SID): Free Stock Analysis
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Other Stocks to Consider
Other stocks to watch out for are
Companhia Siderurgica Nacional
), with a Zacks Rank #1 (Strong Buy) and
Gibraltar Industries, Inc.
Commercial Metals Company
), both with a Zacks Rank #2 (Buy).