Key Takeaways POSCO Future M opened a 45,000-ton precursor plant in Gwangyang to support cathode material production. The plant enhances quality control and supply chain self-sufficiency for POSCO Future M. POSCO secures key materials like nickel and lithium from group subsidiaries outside of China.POSCO Holdings Inc.’s (PKX) POSCO Future M unit successfully completed its precursor plant with an annual capacity of 45,000 tons in Gwangyang, Jeollanam-do Province. To mark its completion, a ceremony was held ...

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Key Takeaways POSCO unveiled a research and development lab in Perth to boost battery materials and rare earths. The lab supports POSCO's drive for raw material localization and carbon-reducing innovations. PKX aims to advance tech in lithium, nickel and rare earths through local collaboration.POSCO Holdings (PKX) has opened the Australia Critical Minerals R&D Lab in Perth with the goal of achieving ultra-gaps in technological competitiveness in the steel, battery material, raw materials and rare earth in ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at ...

POSCO (PKX) is ramping up its expansion in the energy sector by launching a carrier dedicated to liquefied natural gas (LNG), aiming to enhance the stability of its energy transportation amid increasing global supply chain uncertainties. On May 23, POSCO International hosted a naming ceremony for the group's first LNG carrier, the ‘HL FORTUNA,’ at HD Hyundai Samho shipyard in Mokpo, Jeollanam-do, South Korea.The development of this LNG carrier was made possible through a cross-industry collaboration involvi ...

Core Viewpoint - Posco's shares have recently declined by 7.8% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - A hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Posco, with a 2.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - Posco currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].

Core Viewpoint - The analysis compares Posco (PKX) and United States Steel (X) to determine which stock represents a better undervalued investment opportunity for investors in the Steel - Producers sector [1]. Valuation Metrics - Posco (PKX) has a forward P/E ratio of 11.10, significantly lower than United States Steel (X) which has a forward P/E of 26.45 [5]. - PKX's PEG ratio is 0.30, indicating a more favorable valuation compared to X's PEG ratio of 1.31 [5]. - PKX's P/B ratio stands at 0.30, while X has a P/B ratio of 0.86, suggesting that PKX is undervalued relative to its book value [6]. - Based on these metrics, PKX holds a Value grade of A, whereas X has a Value grade of C [6]. Earnings Outlook - PKX is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The positive earnings estimate revisions for PKX indicate a stronger potential for earnings growth compared to X, which is rated as Hold [3][7].

Group 1: Investment Overview - POSCO Holdings announced a total investment of KRW 922.6 billion (approximately $660 million) to enhance competitiveness in its rechargeable battery material subsidiaries [1] - The investment includes KRW 525.6 billion for POSCO Future M, KRW 328 billion for POSCO Pilbara Lithium Solution, and KRW 69 billion for POSCO GS Eco Materials [1] Group 2: Strategic Intent - This investment is part of the company's strategy to prepare for significant market expansion following a slowdown in the electric vehicle sector [2] - POSCO Holdings aims to bolster future competitiveness in the battery materials industry and improve financial stability [2] Group 3: Specific Investments - POSCO Holdings plans to acquire the full allocation of new shares in POSCO Future M, corresponding to its 59.7% ownership [3] - The capital increase for POSCO Future M is expected to support ongoing investments to boost production capacity for anode and cathode materials, including a joint plant in Canada [4] - Investments in POSCO Pilbara Lithium Solution and POSCO GS Eco Materials are aimed at sustainable growth in lithium and recycling operations [5] Group 4: Market Performance - In the past year, shares of PKX have lost 39.7%, compared to the industry's decline of 36.5% [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly POSCO (PKX) and SSAB (SSAAY), which are currently considered undervalued based on various financial metrics [2][3][8]. Company Analysis POSCO (PKX) - PKX holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [3]. - The PEG ratio for PKX is 0.30, significantly lower than the industry average of 0.57, suggesting it may be undervalued relative to its expected earnings growth [4]. - PKX has a P/S ratio of 0.27, compared to the industry average of 0.35, reinforcing its undervaluation based on revenue [5]. - The P/CF ratio for PKX is 4.40, which is attractive compared to the industry average of 14.50, indicating strong operating cash flow relative to its valuation [6]. SSAB (SSAAY) - SSAAY also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another strong candidate for value investors [7]. - The P/B ratio for SSAAY is 0.90, which is lower than the industry average of 1.42, suggesting it may be undervalued [7]. Industry Insights - Both PKX and SSAAY are positioned within the Steel - Producers industry, which currently presents opportunities for value investors due to the identified undervaluation of these stocks based on key financial metrics [8].

Core Viewpoint - Investors in the Steel - Producers sector should consider Posco (PKX) and United States Steel (X) for potential value investment opportunities [1] Group 1: Zacks Rank and Value Scores - Posco has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to United States Steel, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, while the Style Scores system evaluates companies based on specific traits [2] Group 2: Valuation Metrics - Posco's forward P/E ratio is 12.05, significantly lower than United States Steel's forward P/E of 26.61, suggesting that PKX may be undervalued [5] - Posco has a PEG ratio of 0.33, while United States Steel has a PEG ratio of 1.31, indicating that PKX is expected to grow earnings at a more favorable rate relative to its price [5] - Posco's P/B ratio is 0.33, compared to United States Steel's P/B of 0.84, further supporting the notion that PKX is undervalued [6] Group 3: Overall Assessment - Posco's improving earnings outlook and favorable valuation metrics suggest it is the superior value option compared to United States Steel [7]