While U.S. equities in general remain range bound and moribund as investors contend with headwinds like uneven economic growth and a hawkish Federal Reserve, we’re seeing the reappearance of some of the “Trump-flation” trade amongst steelmakers. The Market Vectors Steel (ETF) (NYSEARCA:SLX) is up 1.5% on Friday to push above its 200-day moving average in what looks like an exit from a five-month downtrend.
Since peaking in February, the SLX fell more than 20% into the low set two weeks ago. But now, reports that President Trump is looking at imposing tariffs on imported steel is sending the industry group higher in a big way.
The combination of fundamental tailwinds, technical strength and a modicum of value after a nasty pullback makes the move attractive to new money. Here are three steel stocks looking to benefit: