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S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
bluebird bio stock is ripe for a 400% institutional short squeeze
Critical asset just had biggest fall on record (Ad)
3 lithium stocks to ride a multi-year cycle
Goldman upgraded Nvidia stock, one metric says it could go higher
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Salesforce stock got a boost. Is it growing off the Nvidia boom?
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
bluebird bio stock is ripe for a 400% institutional short squeeze
Critical asset just had biggest fall on record (Ad)
3 lithium stocks to ride a multi-year cycle
Goldman upgraded Nvidia stock, one metric says it could go higher
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Salesforce stock got a boost. Is it growing off the Nvidia boom?
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
bluebird bio stock is ripe for a 400% institutional short squeeze
Critical asset just had biggest fall on record (Ad)
3 lithium stocks to ride a multi-year cycle
Goldman upgraded Nvidia stock, one metric says it could go higher
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Salesforce stock got a boost. Is it growing off the Nvidia boom?
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results

Schnitzer Steel Stock Has Value Down Here

Schnitzer Steel Stock Has Value Down Here Steel recycling and products make Schnitzer Steel NASDAQ: SCHN stock has been in a chopping range between $35 to $57 for over a year despite improving fundamentals. Growth is being driven by rising commodity prices for ferrous and non-ferrous recycled metals and all-time highs for finished steel. Ferrous metals contain iron with magnetic properties including steel and cast iron and its alloys like stainless steel, carbon steel, cast iron, and wrought iron. Non-ferrous metals don’t contain iron like aluminum, copper, zinc, nickel, tin, titanium, bronze and alloys like bronze and brass. The Company continues to invest in advanced metal recovery technology at its major recycling operations. Schnitzer launched its GRN Steel, which are net zero carbon products enable the Company to meet its sustainability targets making this both an ESG and commodities inflation play. Despite global supply chain disruption, demand remains high.  Prudent investors seeking exposure in the steel segment can watch for opportunistic pullback levels in shares of Schnitzer Steel.

Q2 Fiscal 2022 Earnings Release


On Apr. 6, 2022, Schnitzer Steel released its fiscal second-quarter 2022 results for the quarter ending February 2022. The Company reported an earnings-per-share (EPS) profit of $1.38 excluding non-recurring items matching consensus analyst estimates for $1.38. Revenues rose 30.5% year-over-year (YoY) to $783.2 million beating analyst estimates for $779.39 million. Ferrous and non-ferrous sales volumes rose 10% and 8%, respectively. Schnitzer CEO Tamara Lundgren commented, “After delivering record first-quarter results, our second-quarter performance continued the trend of strong financial and operating performance leading to first-half results that were the highest in our Company’s 116-year history. We continued to invest in the rollout of our new advanced metal recovery technology at our major recycling operations and returned capital to our shareholders through both our dividend and share repurchases while delivering positive operating cash flow.”

Conference Call Takeaways

CEO Lundgren reiterated sustainability is at the core of what they do since 1906. Ethisphere named Schnitzer Steel as one of the World’s Most Ethical Companies for eight years straight. Corporate Knights ranked Schnitzer Steel number 15 out their Global 100 list of the world’s most sustainable companies and specifically highlighting its role in the worldwide movement towards a lower carbon future. CEO Lungren transitioned this to the rollout of its zero carbon emission GRN Steel being produced out of its Oregon-based Cascade steel mill. This mill utilizes carbon-free hydroelectricity to create low carbon steel products. The worldwide demand for recycled metals drove growth in the quarter in addition to rising commodity pricing. The October acquisition Columbus Recycling assets helped contribute to the quarter. Schnitzer bought back 200,000 shares of stock in the quarter and delivered its 112th consecutive dividend. The Company felt the pressures from global supply chain disruptions, but demand remains very high as they expect strong results for fiscal Q3 2022 driven by higher sales volumes and strong pricing trends. CEO Lundgren added, “Demand for long products continues to rise during the quarter with prices reaching their highest levels on record primarily driven by increases in construction spending. Since the end of the second quarter, we've seen a sharp increase in ferrous pricing driven by the lack of semi-finished and pit-up iron exports from Ukraine and Russia. Supply flows are strong, supported by higher prices, spring weather, increased industrial activity, and slightly better trucking availability.” The continued pent up demand for autos, and appliances without a recovery of supply is driving up prices in addition to the underinvestment in industrial mining and metal production. The global decarbonization efforts is a powerful driver for the demand for recycled metals.

Schnitzer Steel Stock Has Value Down Here

SCHN Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provide a precision view of the price action playing field for SCHN stock. The weekly rifle chart initially peaked near the $56.25 Fibonacci (fib) level. The weekly uptrend has a rising 5-period moving average (MA) at $51.05 with a weekly 50-period MA just below at $49.30 followed by the weekly 15-period MA support at $46.08. The weekly lower Bollinger Bands (BBs) sit at $33.32. The weekly stochastic made a full oscillation back up towards the 80-band as it stalls. The weekly market structure low (MSL) buy triggered on the breakout back up through $40.48. The daily rifle chart is starting to breakdown with a flat 5-period MA at $51.04 that crossed down through the 15-period MA at $51.81. The daily 200-period MA support sits at $48.42 and daily 50-period MA support is rising at $46.44. The daily lower BBs sit near the $44.14 fib level. Prudent investors can watch for opportunistic pullbacks at the $50.11 fib, $48.74 fib, $45.86 fib, $44.14 fib, $42.19 fib, and the $37.55 fib level. Upside trajectories range from the $59.34 fib level up towards the $70.28 fib level.  

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Should you invest $1,000 in Schnitzer Steel Industries right now?

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Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2018.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

Bachelor of Arts, University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


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