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!

Sector Wrap: Metal Producers Mostly Rise

Stocks in this article: AA ACI AKS ANR BTU CENX CLD CNX FCX NOR NUE PCX STLD SWC X

LOS ANGELES (AP) â¿¿ Shares of major mining, base metals and steel companies were mostly trading higher on Thursday after a Barclays Capital analyst initiated coverage on the sector and said it represents a buying opportunity.

In a research note to clients, Barclays Capital analyst David Gagliano recommended the North American metals and mining sector, despite some inevitable volatility as investors sort out the outlook for global demand in the near term.

He also contends that the broader economic data that typically drive shares in the sector are more likely to turn positive over the next six to 12 months, rather than become exceptionally weaker.

The analyst also believes supply and demand for most metals are not as weak as the equity market might suggest.

In addition, Gagliano says U.S. metals and mining companies are in a significantly better position than in prior downturns to manage through periods of weak prices and demand.

Gagliano has the sector at a rating of "1-Positive," which means the stocks' fundamentals and valuations are improving.

The analyst said he sees the most value in copper, palladium and coal producers, followed by companies that produce steel and aluminum.

Gagliano expects copper and palladium prices will rebound over the next three months, while thermal and metallurgical coal prices will decline.

Beyond a three-month window, Gagliano said the pricing outlook is brightest for copper, palladium and metallurgical coal, followed by aluminum, thermal coal and steel.

Among the sector companies, Gagliano said his top picks are Freeport-McMoRan Copper & Gold Inc., Stillwater Mining Co., and Consol Energy Inc.

Shares of the metal and mining companies covered by Barclays mostly were up in afternoon trading, along with the broader market:

â¿¿ Freeport-McMoRan rose 33 cents to $40.11.

â¿¿ Stillwater added 25 cents, or 2.3 percent, to $11.12.

â¿¿ Consol gained $1.24, or 2.9 percent, to $44.25.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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