A Cheap Steel Company With Some Major Upside
Olympic Steel, Inc. (NASDAQ: Zeus), Is Even Cheaper Than The United States Steel Corporation
In a previous article I had posted right after Trump was sworn into office, I had written about multiple industries that might be beneficiaries under this new administration. One of those industries was the steel industry. I had mentioned Cleveland Cliffs Inc ( CLF 0.00%↑ ) and the US Steel Corp ( X 0.00%↑ ) specifically as possible investments that could see major tailwinds from a Trump administration. Today I’m going to talk about a company with a P/B ratio that’s even lower than the US Steel Corp that has been aggressively expanding their business towards less cyclical, higher margin products while actively devesting from their lower margin businesses. Steel prices have slumped and business from industrial manufacturing has been declining for a couple of years now. Due to the diligence of the management team behind Olympic Steel Inc ( ZEUS 0.00%↑ ) however, if steel demand simply levels out here, the company will likely grow its business simply because of their recent focused expansions to higher margin products. If steel demand picks back up, then I believe that ZEUS’s share price could explode.