When the world was industrializing over 100 years ago, it was steel, to a large extent, that made it possible. Buildings reached to the sky, bridges spanned vast rivers, and countless steel components found their way into our factories, homes, trains, and cars.
Alas, because steel has become so commonplace, we scarcely think about it now. And that's a shame. Steel remains just as vital to our modern world as it ever was -- and that can make steel company stocks a fantastic investment. Granted, the steel industry itself is subject to cycles, but make no mistake: There's a strong argument that steel stocks have a home in any long-term diversified stock portfolio, as long as you pay the right price for them.
But which steel company stocks should investors consider? There are a plethora of options, from the gargantuan to the minor
Feel overwhelmed? Well, look no further. We took an in-depth look at the steel industry, giving weight to financial strength, product mix, and future earnings power, and came up with the best steel company stocks around.
So without further ado, here are the top steel stocks to buy today.
Steel products for the 21st century
Based in Reading, Pennsylvania, Carpenter Technology Corporation (NYSE:CRS) not only manufactures but also distributes its advanced steel, titanium, and various other metals offerings. But Carpenter's offerings are not your typical steel beams. Its customers include major players in everything from the defense and aerospace industries to manufacturers of medical devices. They all come to Carpenter for advanced engineering of steel products for one reason -- the company is among the very best at making the steel products of the 21st century.
Carpenter Technology trades for 21 times forward earnings, which is rich but reasonable, given that it's expected to grow EPS 38% in fiscal 2018, has thrown off over $161 million in free cash flow over the past 12 months, and sports a 2% dividend yield. For a great steel stock primed to benefit from the advanced manufacturing that will be required in the decades ahead, look no further than Carpenter.
Positioned for the increasingly global economy
Commercial Metals Company (NYSE:CMC) just about does it all. Not only does it produce steel and other metal products, but it also distributes them through a wide network of facilities around the globe. While based in Irving, Texas, the company owns mills as far away as Poland. So far-reaching is the company, in fact, that domestic sales account for just 60% of total revenue. Not bad for a Texas steel producer. Revenue can be divided further into steel production, fabrication, and recycling.
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Dynamic Wealth Research was founded on the principle the world is changing at an ever-increasing pace. The greatest profit opportunities an investor will ever find are from massive, sweeping changes. Dynamic Wealth Research analyzes and closely follows these changes, keeps its readers on the leading edge of them, and shows you how to be best positioned these anxious, interesting, and ultimately profitable times.
