Today, X was the only steel stock that traded positive after opening marginally lower than the previous close.
This could mean that traders are anticipating a beat in earnings that will be released premarket tomorrow. It will be an interesting day for X which has negative earnings for the past 8 earnings seasons.
Should X beat its earnings of a negative 20cents outlook, this would definitely kick start a long bullish rally for X which is trading way behind its peers in the steel sector and the commodity space as a whole.
With all the talks of inflation and perhaps stagflation, many investors are keen to get into materials. Steel may not be their first choice, but the valuation supports a bullish thesis.
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