There are a few reasons to like Steel Dynamics (STLD).
One, after pulling back from $74 to $62.50, shares of Steel Dynamics (STLD) are just starting to bounce from double bottom support. Two, the company says earnings are on track to outperform year-earlier numbers, seeing Q3 EPS in a range of $4.88 and $4.92, which is above estimates for $4.29. Three, there’s substantial demand for steel at the moment. In addition, analysts at Deutsche Bank just raised their target price to $98 from $72.
Short-term weakness in STLD may be a solid opportunity.