End-markets like aerospace, oil/gas, and power gen may not be back up
to full power right now, but investors have already started positioning
themselves for a better 2014. With that, the stocks of specialty
metal/alloy producers like Allegheny Technologies (ATI) and Carpenter Technology (CRS) have strengthened recently, as have those of more conventional steel producers like Nucor (NUE) and Steel Dynamics (STLD).
The much smaller and less well-covered Universal Stainless & Alloy Products (USAP)
has also enjoyed a solid rebound of late, with the shares up about 30%
since early August. USAP is well-positioned to benefit from destocking
in end-markets like aerospace and oil/gas, but the company also has a
potentially powerful earnings driver in a mix that is shifting toward
higher-value products. This stock is like many others in that it is not
particularly cheap today, but I do like the prospects for better results
in the coming years.
Read the full article at Seeking Alpha:
Universal Stainless & Alloy Products Looking For Improving Markets And Mix ASAP
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