AK Steel Holding Corporation (AKS) Buy or Sell Stock Guide

Last updated: Dec 24, '18

The analysis below may be helpful to you if you have any of the following questions about AKS stock:

  • Is AKS a buy or a sell?
  • Should I sell or hold AKS stock today?
  • Is AKS a good buy / a good investment?
  • What are AKS analyst opinions, recommendations, ratings?

Here are AKS stock buy reasons/signals:

1. Investments in iron ore and metallurgical coal assets provide the company with more control over input costs.

2. The company’s production of value-added products that it can deliver on a just-in-time basis limits competition from imports.

3. AK Steel will benefit from growth in the North American auto market, which accounts for more than half of its total sales.

4. AKS stock price ($2.32) is at the 52-week low. Perhaps now is a good time to buy?

5. AKS quarterly revenue growth was 16.10%, higher than the industry and sector average revenue growth (11.34% and 3.76%, respectively).

6. AKS profitability is improving. The YoY profit margin change was 0.23pp.

7. AKS forward P/E ratio is 3.49, and it’s low compared to its industry peers’ P/E ratios.

8. AKS Price/Sales ratio is 0.12, and it’s low compared to its industry peers’ P/S ratios.

9. AKS PEG ratio (P/E adjusted for growth) is 0.23, and it’s low compared to its industry peers’ PEG ratios.

10. AKS average analyst rating is Buy.

11. AKS average analyst price target ($4.78) is above its current price ($2.32).

Here are AKS stock sell reasons/signals:

1. The company’s efforts to vertically integrate will yield little benefit, since iron ore spot prices have declined significantly.

2. Aluminum might take share from steel in the automotive market, weighing on the company's shipment volume.

3. The company is highly leveraged to the automotive end market, so weak North American auto sales will weigh heavily on earnings.

4. AKS Price/Book ratio is 8.38, and it’s high compared to its industry peers’ P/B ratios.

5. AKS short share of float is 23.91%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

6. AKS short interest (days to cover the shorts) ratio is 6.32. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on AKS?

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