NEW YORK (TheStreet) -- Tenaris SA (TS) was falling 6.17% to $43.81 on Wednesday afternoon after the U.S. Department of Commerce announced it would not impose tariffs on South Korea's steel pipes used in the oil and natural gas industries. Tenaris promptly fell, along with other steel companies such as United States Steel (X).
Tenaris and its peers could have benefited from such a tariff, but South Korea, the largest steel exporter among nine nations named in a trade case filed by U.S. Steel Corp. and other producers, avoided it. U.S. Steel and its associates alleged that South Korea had been selling steel pipes at unfairly low prices, but the Department of Commerce stated it found no evidence of such action.
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TheStreet Ratings team rates TENARIS SA as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TENARIS SA (TS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."