This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Three Metal Stocks to Watch

Stocks in this article: GGB MEA ZEUS

NEW YORK ( TheStreet) -- Gerdau (GGB), Olympic Steel (GGB), and Metalico (MEA) are scheduled to announce second-quarter results today.

Steel makers Gerdau and Olympic are expected to report revenue increases compared to the first quarter of 2010, while scrap metal recycler Metalico could post a quarter-over-quarter decline in revenues due to the pullback in domestic ferrous scrap prices.

Gerdau, a Brazilian steel producer, is set to benefit from the robust Brazilian economy realizing higher revenues in the second quarter. The company's sales for the period are forecast to increase 13.2% quarter-over-quarter and 25.7% year-over-year.

However, for the second half of 2010, Gerdau will likely witness lower volumes and higher costs in the domestic market. Brazil's second largest steel producer, Usinas Siderurgicas de Minas has already been downgraded to "neutral" from "buy" at Banco BTG Pactual last week due to the company's greater exposure to the Brazilian markets.

Olympic steel is a leading U.S.-based steel service center focused on direct sales and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheets, and plate steel products. The company is anticipated to have benefited from the higher utilization rates of 70.8% to 74.6% for U.S. steel mills during the second quarter, in comparison to the first quarter's range of 61.5% to 71.7%, as reported by the American Iron and Steel Institute (AISI).

The company is set to post earnings of 38 cents per share compared to 16 cents per share and negative $3.11 per share during the first quarter of 2010 and second quarter of 2009 respectively, according to analysts polled by Bloomberg.

Sales for the period are expected at $200.6 million compared to $122.4 million a year earlier, and $167.9 million a quarter ago. Meanwhile, EBITDA for the quarter is expected at $10.3 million from $6.8 million a quarter ago, and $0.3 million a year ago. These numbers indicate that although sales are expected to increase only by 19.4%, EBITDA is anticipated to zoom 52.6% quarter-over-quarter.

Metalico, a leading recycler of ferrous metals, is expected to report a 6.8% decline in sales during the second quarter. Meanwhile, earnings are expected at 12 cents per share compared to 8 cents per share during the first quarter of 2010, and negative 6 cents per share during the second quarter of 2009.

The decline in sales in the second quarter is attributed to lower unit shipments and decline in commodity prices. The highly cyclical nature of the scrap metal industry could impact sales in the second quarter.

Metalico has four buy, no hold and no sell ratings, as per TheStreet's Analyst ratings guide. While Gerdau has two buy, three hold and no sell ratings, Olympic steel has two buy, four hold and no sell ratings.

Karvy Global Services (www.karvyglobal.com), a subsidiary of the Karvy group (www.karvy.com), provides specialized research in asset classes including stocks, mutual funds and insurance to leading Wall Street firms.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs