Market Performance - Benchmark equity indices Sensex and Nifty ended lower, with Sensex declining by 296.59 points or 0.36% to settle at 82,269.78, and Nifty dropping by 98.25 points or 0.39% to end at 25,320.65, snapping a three-day rally [1][2] - The decline was influenced by selling pressure in metal and IT stocks, with Tata Steel experiencing the largest drop of 4.57% among Sensex firms [2] Foreign Investment Activity - Foreign institutional investors sold equities worth ₹393.97 crore on January 29, 2026, while domestic institutional investors purchased stocks worth ₹2,638.76 crore [3] Economic Outlook - India's economy is projected to grow by 6.8-7.2% in the upcoming fiscal year, maintaining its status as the fastest-growing major economy despite global trade risks and volatility [5] Market Sentiment - The Indian equity markets exhibited volatility ahead of the Union Budget, with cautious sentiment due to persistent foreign fund outflows and rupee depreciation [4][7] - Analysts noted that market participants are balancing pre-Budget positioning against external headwinds, contributing to a cautious market environment [7]

Core Insights - Carpenter Technology reported record profitability for its fiscal 2026 second quarter, driven by pricing momentum, expanding margins, and strengthening demand, particularly in aerospace and defense [3][6][18] Financial Performance - Total company sales excluding raw material surcharge increased by 8% year-over-year but decreased by 2% sequentially, attributed to typical year-end factors [1] - The company generated $155 million in operating income for the quarter, a 31% increase compared to the previous quarter [2][6] - Gross profit rose to $218.3 million, reflecting a 23% year-over-year increase [8] Segment Performance - Specialty Alloys and Operations (SAO) segment achieved an adjusted operating margin of 33.1%, up from 28.3% a year earlier [2] - Aerospace and defense sales were down 1% sequentially but up 15% year-over-year, with bookings increasing by 8% sequentially and commercial aerospace bookings up 23% [7] - Medical sales declined by 7% sequentially and 22% year-over-year, primarily due to reduced demand for specific titanium products [7] - Energy sales decreased by 10% sequentially but increased by 19% year-over-year, driven by power generation demand [7] Cash Flow and Capital Allocation - The company generated $132.2 million from operations and $85.9 million in adjusted free cash flow for the quarter [4][11] - Carpenter repurchased $32.1 million of stock, totaling $183.1 million under a $400 million program [12] - Total liquidity at quarter-end was $730.8 million, including $231.9 million in cash [13] Market Dynamics and Guidance - Management noted strengthening demand in aerospace and defense, with bookings up 8% sequentially and constrained nickel-based superalloy supply [5][16] - The company raised its full-year fiscal 2026 operating income guidance to $680 million to $700 million, representing a 30% to 33% increase over fiscal 2025 [18]

Company Overview - Metallus (NYSE: MTUS) is a leader in high-quality specialty metals, manufactured components, and supply chain solutions, with a focus on recycled scrap metal [3] - The company has been in the business of producing high-quality steel for over 100 years and serves various demanding applications in industrial, automotive, aerospace & defense, and energy end-markets [3] - Metallus employs approximately 1,850 people and reported sales of $1.1 billion in 2024 [3] Upcoming Financial Results - Metallus will release its fourth-quarter and full-year 2025 results on February 19, 2026, after the market closes on the New York Stock Exchange [1] - A conference call with the financial community is scheduled for February 20, 2026, at 9:00 a.m. ET, which will be accessible via live Internet broadcast [2] - A replay of the conference call will also be available on the company's investor website [2]

Core Insights - Commercial Metals (CMC) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum [1][2] - Analysts show growing optimism regarding CMC's earnings prospects, correlating estimate revisions with stock price movements [2][3] Estimate Revisions - Current-quarter earnings estimate is $1.33 per share, reflecting a significant increase of +411.5% year-over-year, with a 29.76% rise in the Zacks Consensus Estimate over the last 30 days [6] - For the full year, the expected earnings are $7.34 per share, indicating a year-over-year change of +134.5%, with a 19.72% increase in the consensus estimate due to favorable revisions [7][8] Zacks Rank - CMC has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts on upward earnings estimate revisions, which historically leads to outperformance compared to the S&P 500 [9] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][9] Market Performance - The stock has gained 8.4% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Company Overview - Nucor Corporation (NYSE:NUE) is the largest steel manufacturer in the U.S., producing various steel products including sheet, plate, bar, and structural steel, as well as raw materials and industrial gases for multiple applications [2] Financial Performance - Nucor reported a "mixed quarter," with shares experiencing a pullback despite being at a 52-week high prior to the quarter [1] - The financial results were not as strong as anticipated, indicating underlying challenges despite some positive factors [1] Market Environment - The company benefits from protective steel tariffs that prevent foreign products from being sold at lower prices, which supports the domestic steel industry [1] - CEO Leon Topalian noted that the current import situation is the best he has seen in his 30 years at Nucor, highlighting a supportive trade environment for U.S. manufacturing [1]

Market Overview - Wall Street achieved a historic milestone with the S&P 500 reaching the 7,000 mark for the first time, driven by the Federal Reserve's decision to maintain steady interest rates, indicating solid economic expansion [1][10] - Investor confidence was bolstered by the Fed's assessment of a stabilizing labor market, despite the index ending the session with little change [1] Investment Strategy - The current market conditions are likely to enhance the attractiveness of low-leverage stocks, as investors may prioritize financial resilience and capital preservation over aggressive growth strategies [2] - Recommended companies with low leverage include ThyssenKrupp (TKAMY), Alcoa Corp. (AA), Coeur Mining (CDE), FirstSun Capital Bancorp (FSUN), and TechnipFMC (FTI), which are seen as safer options during market volatility [2][10] Low-Leverage Stocks - Leverage in finance refers to borrowing capital to operate and expand businesses, typically through debt financing, which can pose risks if not managed properly [4][5] - Companies with low debt levels are generally less risky and can provide more stable returns, especially during economic downturns [6][11] - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with lower ratios indicating better solvency [7] Company Highlights - **ThyssenKrupp (TKAMY)**: Recognized for its environmental efforts, the company expects a 2.1% increase in fiscal 2026 sales and a 24.1% rise in earnings, holding a Zacks Rank 1 [15][16] - **Alcoa (AA)**: Despite a 1.1% decline in revenues, adjusted EPS surged by 21.2%, with a projected 8.5% revenue increase and a 34% earnings growth for 2026, also holding a Zacks Rank 1 [17][18] - **Coeur Mining (CDE)**: The company is undertaking its largest exploration campaign since 2012, with a projected 30.2% revenue increase and a 116.9% earnings growth for 2026, holding a Zacks Rank 1 [19][20] - **FirstSun Capital Bancorp (FSUN)**: Reported a 10.5% year-over-year increase in adjusted EPS and expects a 61.6% revenue increase for 2026, holding a Zacks Rank 1 [21][22] - **TechnipFMC (FTI)**: Awarded a significant contract by BP, with a projected 9.6% revenue increase and a long-term earnings growth rate of 18.8%, holding a Zacks Rank 2 [23][24]

Core Insights - The integration of AI into traditional industries, such as steel, is becoming a significant topic, with experts emphasizing the shift from tool application to deep embedding in business processes, enhancing efficiency and reshaping business models [1][5] Group 1: AI in Steel Industry - FindSteel Network is a pioneer in applying AI within the steel distribution sector, addressing challenges in B2B transactions by automating information processing and improving efficiency [3] - The steel industry is currently experiencing a transformation, with high demand for industrial steel and declining demand for construction steel, prompting the need for AI to reduce costs and enhance efficiency [3] - FindSteel Network has developed technologies that automate the processing of supplier quotes and customer inquiries, significantly improving operational efficiency [3] Group 2: AI's Broader Impact - AI is expected to have a structural impact across various industries, including energy, light industry, infrastructure, medical, and electronics, prompting industry leaders to leverage AI capabilities to reshape supply chains [5] - Companies like Alibaba and Baidu are utilizing AI to create new paradigms in foreign trade and B2B growth, respectively, focusing on intelligent collaboration and data-driven strategies [5][6] - The importance of establishing standards, ecological collaboration, and cross-entity cooperation is highlighted as essential for the sustainable and scalable application of AI in industries [6] Group 3: Future Directions - The integration of AI with traditional industries is seen as a means to enhance China's manufacturing capabilities and improve its position in the global supply chain [6] - The Chinese Electronic Commerce Association emphasizes the need for an open and fair environment in global digital trade to support all enterprises [6]

January 29, 2026 DISCLAIMER POSCO HOLDINGS 2025 2024 2023 2025 2024 2023 | (KRWbillion) | | Revenue | | | Operating Profit | | | Net Profit | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2023 | 2024 | 2025 | 2023 | 2024 | 2025 | 2023 | 2024 | 2025 | | Consolidated Income | 77,127 | 72,688 | 69.095 | 3,531 | 2,174 | 1.827 | 1,846 | 948 | 5043) | | Steel | 63,539 | 62,201 | 59,411 | 2,557 | 1,637 | 1,960 | 1,241 | 691 | 1,154 | | POSCO1) | 38,972 | 37,557 | 35,011 | 2,083 | 1,473 | 1,78 ...

从2025年来看，钢材市场呈现供需双弱局。需求端最大的制约因素还是地产。根据国家统计局数据， 2025年房地产开发投资完成额同比下降17.2%，房屋新开工面积、竣工面积累计同比分别下降20.4%、 18.1%，新建商品房销售面积同比下降8.7%，房地产仍延续调整态势。基建投资因财政政策前置发力， 下半年支撑不足，全年基建投资增速下降1.48%。但制造业用钢需求稳步增长，其中汽车、工程机械、 造船、能源等领域表现突出。另外，钢材及钢坯出口维持较高增速，部分弥补了房地产用钢需求的减 弱。 2025年钢材供给随需求走弱，尤其下半年铁水减量明显。2025年上半年受益于碳元素和铁元素的让利， 尽管钢材价格重心下移，但行业利润尚可，企业主动减产意愿不足。下半年钢材需求承压，库存高企， 叠加原料坚挺，行业利润收缩，产量下滑。 基本面驱动有限 由于基本面缺乏强有力的驱动，当市场情绪降温后，螺纹钢重新回归区间震荡行情。从中长期来看，在 需求压力下，钢材行业或继续维持薄利状态，因此驱动多来自原料端。 展望2026年，房地产仍处于磨底阶段，相关数据或延续走弱态势，但降幅收窄。2026年是"十五五"规划 的开局之年，基建仍是经济重要 ...

Core Insights - Commercial Metals Company (CMC) and Nucor Corporation (NUE) are leading steel producers in the U.S. with strong domestic operations and similar business models, benefiting from a recovery in steel prices [1] Group 1: Commercial Metals Company (CMC) - CMC reported revenues of $2.12 billion in Q1 of fiscal 2026, reflecting an 11% year-over-year growth driven by demand in the North America Steel Group and Construction Solutions Group, though partially offset by weak market conditions in Europe [2] - The company achieved earnings per share of $1.84 in the quarter, a significant year-over-year increase of 142%, surpassing Zacks Consensus Estimates for earnings and revenues [3] - CMC completed two major acquisitions in December 2025, which are expected to enhance results in Q2 of fiscal 2026 and position the company as a leading player in the Mid-Atlantic and Southeastern regions [4] - The company anticipates operational synergies of $25-$30 million from the acquisitions by year three, although it will incur acquisition-related expenses in Q2 of fiscal 2026 [5] - CMC launched the Transform, Advance, Grow Program in September 2024, aiming for an annualized EBITDA benefit of $150 million for fiscal 2026 [6] Group 2: Nucor Corporation (NUE) - NUE reported revenues of $7.69 billion in Q4 of 2025, an 8.6% year-over-year increase, with steel mill sales totaling 4,602,000 tons, up 0.5% year-over-year [7] - The company expects earnings to rise across all segments in Q1 of 2026, particularly in the Steel Mills segment due to higher volumes and prices [8] - NUE is executing growth projects to meet significant end-market demand, supported by a healthy order backlog and recent acquisitions aimed at expanding its product offerings [10][11] Group 3: Financial Estimates and Performance - The Zacks Consensus Estimate for CMC's fiscal 2026 earnings is $7.34 per share, indicating a year-over-year growth of 134.5%, while the 2027 estimate suggests a slight dip of 1.5% [12] - For NUE, the fiscal 2026 earnings estimate is $11.51 per share, reflecting a year-over-year jump of 49.3%, with a 2027 estimate of $13.79 indicating growth of 19.8% [13] - CMC's stock has gained 56.3% over the past year, outperforming NUE's 44.7% increase [14] - CMC is trading at a forward 12-month earnings multiple of 10.49X, lower than its five-year median, while NUE is at 14.86X, higher than its five-year median [16] Group 4: Investment Outlook - Both CMC and NUE are well-positioned to benefit from the recovery in steel prices, but CMC has shown stronger price performance and a more attractive valuation, making it a potentially smarter investment choice [18] - CMC currently holds a Zacks Rank 2 (Buy), while NUE has a Zacks Rank 3 (Hold) [19]