Why AK Steel Holding Corporation Soared Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of steel producer AK Steel Holding Corporation (NYSE: AKS  ) surged 15% today after its quarterly results easily beat analyst expectations.

So what: The stock has plunged in recent weeks on concerns over a pullback in steel prices, but today's Q4 results -- adjusted EPS of $0.09 topped Wall Street expectations by $0.04 on a revenue increase of 3% -- are quickly easing those worries. In fact, AK's average selling price for the quarter was $1,031 per ton, representing a 2% increase over the year-ago period, suggesting that gross margins are holding up much better than expected.

Now what: Don't expect the operating momentum to slow anytime soon. "I am delighted with our fourth quarter 2013 results and our strong finish to the year 2013," said Chairman, President, and CEO James Wainscott. "As we enter 2014, we will build upon our solid foundation for the future as we continue to make progress and add value to AK Steel." More importantly, with the stock still off more than 20% from its 52-week high, it seems there is plenty of room left to buy into that bullishness.

More compelling long-term picks
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2812783, ~/Articles/ArticleHandler.aspx, 8/28/2015 11:03:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated Moments ago Sponsored by:
DOW 16,567.65 -87.12 -0.52%
S&P 500 1,983.83 -3.83 -0.19%
NASD 4,795.64 -17.07 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 10:47 AM
AKS $2.97 Up +0.05 +1.71%
AK Steel Holding C… CAPS Rating: **