Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: BP, United States Steel, AK Steel, Olympic Steel and Gilead Sciences

CHICAGO, Jan. 21, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the BP Plc (NYSE:BP-Free Report), United States Steel Corporation (NYSE:X-Free Report), AK Steel (NYSE:AKS-Free Report), Olympic Steel, Inc. (Nasdaq:ZEUS-Free Report) and Gilead Sciences, Inc. (Nasdaq:GILD-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Shale's Triumph: 3 Steel Picks

Last week, Chicago Mayor Rahm Emanuel said a revolution as big as the Internet was underway in the U.S. Speaking to CNBC, Emanuel said: "Washington's not talking about this; the biggest revolution equal to the internet is… energy independence in the United States. The cheap natural gas is going to basically allow us to re-shore manufacturing."

Energy Independence

On the same day, BP Plc (NYSE:BP-Free Report) said the U.S. will achieve energy independence in 2035. Its Energy Outlook 2035 report reveals that the nation will be able to meet all its energy needs by 2035. This is because demand growth for energy will fall within this period. At the same time, shale oil and gas production will rise at a fast clip.

The report goes on to emphasize how new shale technology has changed the terms of trade for energy resources. It says that in the next twenty years, Asia and Europe will emerge as the primary importers of fuel. On the other hand, OPEC countries will have to reduce production in order to prevent a price plunge.

The Cost Advantage

Higher domestic production of shale has created a significant cost advantage for U.S. manufacturers. According to a report from the Boston Consulting Group, higher production of natural gas has meant that prices have declined by around 51% since 2005. As technological advancements kick in, costs are expected to go down further.

As a result, producers located outside the U.S. now operate with natural gas prices that are 2.6 to 3.8 times higher than domestic prices. On the other hand, lower prices in the U.S. will benefit not just industries such as chemicals and plastics which use products directly derived from natural gas.

Companies which supply the equipment needed to extract shale at such a rapid pace will also gain.  At the same time, they too will benefit from lower energy costs.

3 Steel Picks

The proliferation of shale producers, both large and small, means that companies which supply products such as high quality tubes will have a ready and expanding market. Below we present three companies gaining from the shale revolution, each of which also have a good Zacks rank.

United States Steel Corporation

United States Steel Corporation (NYSE:X-Free Report) is a producer of both flat rolled and tubular products. It has several domestic and international production facilities. The company's largest plant in the U.S. is Gary Works, located in Gary, Indiana.  In 2010, it was the thirteenth largest steel producer in the world.

U.S. Steel holds a Zacks Rank #1 (Strong Buy) and has expected earnings growth of 77.90%. The forward price-to-earnings Ratios (P/E) for the current financial year (F1) is 22.95.

AK Steel Holding Corporation

AK Steel (NYSE:AKS-Free Report) has nine plants located in Indiana, Kentucky, Ohio and Pennsylvania, which form the bulk of its operational capacity. These facilities are steelmaking and finishing plants and also produce tubes. The company is a producer of carbon and stainless steel which is ultimately converted into welded steel tubing.

Currently the company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 136.20%. It has a P/E (F1) of 25.76.

Olympic Steel, Inc.

Our third choice is Olympic Steel, Inc. (Nasdaq:ZEUS-Free Report). The company is a processor and distributor of a variety of value added steel products. This includes carbon and stainless flat rolled sheets. It acts as an intermediary between steel producers and end users such as OEM manufacturers, as well as automobile and heavy equipment producers.

Besides a Zacks Rank #2 (Buy), Olympic Steel, Inc. has expected earnings growth of 23.10%. It has a P/E (F1) of 19.54.

As the production of shale oil and gas continues at a rapid pace, energy costs will remain low. At the same time, the demand for materials required in shale production will remain high. This is why these three stocks will make good additions to your portfolio.

European Approval for Gilead's Sovaldi

Good news flowed in for Gilead Sciences, Inc. (Nasdaq:GILD-Free Report) from Europe as the European Commission cleared the company's potential blockbuster drug Sovaldi (sofosbuvir) as a combination therapy for treating adults suffering from chronic hepatitis C virus (HCV), a major cause of liver cancer and liver transplantation in Europe. The approval of the all-oral HCV treatment in the EU with a broad label does not surprise us as its clearance was recommended by the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) in Nov 2013.

Gilead gained the European approval for Sovaldi on the basis of encouraging data from four phase III studies – NEUTRINO, FISSION, POSITRON and FUSION. Gilead had submitted the marketing application to the EMA in April last year. Moreover, the EMA also considered data from two other phase III studies (VALENCE and PHOTON-1) while assessing the application on an accelerated basis.

The approval of Sovaldi is a big positive for HCV patients as it would not only bring down the duration of therapy to a minimum of 12 weeks but also eliminate/reduce the duration of peg-IFN injections depending on the genotype of the disease. Currently, HCV therapy includes up to 48 weeks of treatment with a regimen inclusive of injectable peg-IFN. Moreover, the current standard of care comes with several side effects, which make it difficult for patients to remain on treatment.

The EC cleared the drug as an all-oral therapy for treating patients affected with genotypes 1, 2, 3, 4, 5 or 6 of the virus. Sovaldi in combination with ribavirin can also be used to treat chronic HCV patients awaiting liver transplantation to prevent the recurrence of the virus after transplant.

The European approval of Sovaldi would not only boost Gilead's top line but also strengthen its position in the lucrative HCV market. Approximately 9 million people are estimated to be affected by chronic HCV in Europe alone.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BP - FREE 
Get the full Report on X - FREE 
Get the full Report on AKS - FREE 
Get the full Report on ZEUS - FREE 
Get the full Report on GILD - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his session at 20th Cloud Expo, Chris Carter, CEO of Approyo, will discuss the basic set up and solution for an SAP solution in the cloud and what it means to the viability of your company. Chris Carter is CEO of Approyo. He works with business around the globe, to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork's) and SAP HANA. At Approyo, we support firms who are looking for knowledge to grow through current business process, where even ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...