Business Overview - The company primarily manufactures and markets steel wire reinforcing products for concrete construction applications, focusing on Welded Wire Reinforcement (WWR) and Prestressed Concrete Strand (PC Strand) [15] - In 2025, PC Strand accounted for 66% of sales, while Welded Wire Reinforcement represented 34% [13] - Distributors account for 70% of sales, while Rebar Fabricators, Contractors, and Concrete Product Manufacturers make up the remaining 30% [17] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15% [17] Growth Strategy - The company aims to convert rebar users to Engineered Structural Mesh (ESM), leveraging manufacturing and engineering capabilities [47] - The company acquired O'Brien Wire Products for $5.1 million in November 2024 and Engineered Wire Products for $67.0 million in October 2024 [49] Financial Performance - As of December 27, 2025, the company had $15.6 million in cash and no borrowings outstanding on its $100.0 million revolving credit facility [94] - Capital expenditures are expected to total approximately $20.0 million in fiscal year 2026 [90] - The company is currently paying a regular quarterly cash dividend of $0.03 per share [96] - The company repurchased $2.3 million of shares in FY 2025 and $0.7 million year-to-date in FY 2026 [100] Market Outlook - In November 2025, the Architecture Billings Index (ABI) registered 45.3, indicating a contraction in activity [104] - The Dodge Momentum Index (DMI) increased 7.0% in December 2025, signaling strengthening activity [104] - Approximately 10% of the company's revenues are directly affected by import competition [106]

Core Thesis - Cleveland-Cliffs Inc. is positioned for significant upside due to both company-specific and macroeconomic factors, with a current share price of $13.36 and P/E ratios of 133.67 (trailing) and 62.89 (forward) [1][2] Company-Specific Developments - The company has not experienced the same multi-hundred percent returns as other steel companies over the past five years, creating an asymmetric investment opportunity [2] - A potential strategic investment from POSCO, estimated at a 10% to 20% stake, could enhance the balance sheet and validate Cleveland-Cliffs' vertically integrated U.S. steel model [3] - Management has taken steps to improve margins by idling or permanently closing at least six low-margin facilities, with further rationalization expected [4] Macro Factors - Tariffs are boosting domestic pricing power, while a changing interest rate environment could ease Cleveland-Cliffs' debt burden, especially with potential rate cuts anticipated before 2026 [5] - Demand-side factors, such as interest-free or subsidized auto financing, are expected to support vehicle production and increase steel intensity, aligning with the company's focus on higher-value markets [5] Future Outlook - Options activity post-May may confirm improving fundamentals, with a reasonable upside target of $20 under pessimistic assumptions and a potential move above $30 in a favorable macro and execution scenario [6] - A pro-manufacturing policy backdrop could further amplify gains for Cleveland-Cliffs [6] - The thesis on Cleveland-Cliffs shares similarities with a previous bullish thesis on Steel Dynamics, emphasizing balance sheet repair and macro tailwinds [8]

Net earnings for the first quarter of fiscal 2026 increased to $7.6 million, or $0.39 per share, compared with $1.1 million, or $0.06 per share, in the prior year quarter. Prior year results included $1.0 million in restructuring charges and acquisition-related costs, which reduced net earnings per share by $0.04. Insteel's first quarter results were driven by stronger demand for the Company's concrete reinforcement products, which supported wider spreads between selling pricing and raw material costs. Net ...

Core Viewpoint - Siderurgica Nacional (SID) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which significantly influences stock prices [2][4]. - Rising earnings estimates for Siderurgica Nacional suggest an improvement in its underlying business, likely leading to increased stock prices as investors respond positively [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Siderurgica Nacional's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Siderurgica Nacional is expected to earn $0.13 per share, with no year-over-year change; however, the Zacks Consensus Estimate has increased by 150% over the past three months, reflecting analysts' growing optimism [8].

分组1 - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies [1] - Fast-moving trending stocks can lose momentum if their future growth does not justify their high valuations, leading to potential downside risks for investors [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] 分组2 - Siderurgica Nacional (SID) has shown a price increase of 7.5% over the past four weeks, indicating growing investor interest [4] - SID has gained 14.7% over the past 12 weeks and has a beta of 1.67, suggesting it moves 67% more than the market [5] - SID has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - An upward trend in earnings estimate revisions has helped SID achieve a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - SID is trading at a Price-to-Sales ratio of 0.31, indicating it is attractively priced at 31 cents for each dollar of sales [7] - There are other stocks that also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting additional investment opportunities [8]

Market Performance - Equity benchmark indices Sensex and Nifty declined, with Sensex dropping 244.98 points (0.29%) to 83,382.71 and Nifty falling 66.70 points (0.26%) to 25,665.60, extending previous losses due to weakness in IT, consumption, and select banking stocks [1][4] - The BSE Sensex experienced a larger intraday drop of 442.49 points (0.52%) during the trading session [4] Sector Performance - Major laggards included Tata Consultancy Services, Asian Paints, Maruti, Sun Pharma, Hindustan Unilever, ICICI Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Larsen & Toubro [4] - Conversely, Tata Steel, NTPC, Axis Bank, and UltraTech Cement were among the gainers [6] Investor Activity - Foreign institutional investors sold equities worth ₹1,499.81 crore, while domestic institutional investors purchased stocks worth ₹1,181.78 crore [6] Geopolitical and Economic Factors - Escalating geopolitical tensions and persistent foreign fund outflows contributed to market weakness, alongside fresh tariff-related uncertainties that unsettled investors [1][3] Global Market Context - In Asian markets, South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng indices closed higher, while Shanghai's SSE Composite index ended lower [6] - Brent crude oil prices decreased by 0.99% to $64.82 per barrel [7]

Core Viewpoint - Nucor Corporation will host a live conference call to discuss its fourth quarter earnings for the year ended December 31, 2025, on January 27, 2026, at 10:00 a.m. Eastern Time [1][3]. Group 1: Company Overview - Nucor and its affiliates are engaged in the manufacturing of steel and steel products, with operations in the United States, Canada, and Mexico [2]. - The range of products includes carbon and alloy steel in various forms such as bars, beams, sheets, and plates, as well as hollow structural section tubing and other steel-related products [2]. - Nucor is recognized as North America's largest recycler, also involved in brokering ferrous and nonferrous metals, pig iron, and hot briquetted iron [2]. Group 2: Conference Call Details - The conference call will be hosted by Leon Topalian, Nucor's Chair, President, and CEO, and will include a review of the company's fourth quarter results followed by a Q&A session [1]. - Participants can access the live event through specified web links, and an archived version will be available for those unable to attend live [3].

Economic Indicators - The U.S. consumer price index increased by 0.3 percent in December, aligning with economist expectations [2][31] - Core consumer prices, excluding food and energy, rose by 0.2 percent in December, slightly below the expected 0.3 percent increase [2][31] - The annual growth rate of consumer prices remained unchanged at 2.7 percent in December, consistent with November's rate [2][32] - The annual growth rate of core consumer prices also held steady at 2.6 percent, while an increase to 2.7 percent was anticipated by economists [3][32] Stock Market Performance - Major U.S. stock indices are projected to open slightly higher, following a recovery from an initial pullback [1] - The Dow Jones rose by 86.13 points (0.2 percent) to close at 49,590.29, while the Nasdaq increased by 62.56 points (0.3 percent) to 23,733.90, and the S&P 500 climbed by 10.99 points (0.2 percent) to 6,977.27 [5] - The NYSE Arca Computer Hardware Index surged by 5.0 percent, indicating strong performance in the computer hardware sector [10] Federal Reserve and Interest Rates - The Federal Reserve is expected to maintain interest rates at its upcoming meeting, with potential cuts of at least a quarter point anticipated in the following months [10] - Concerns regarding the Federal Reserve's independence have arisen due to subpoenas served by the Department of Justice related to Fed Chair Jerome Powell's testimony [6][7] - Powell described the subpoenas as "unprecedented," attributing them to pressure from President Trump regarding interest rate policies [8] Commodity Markets - Crude oil futures increased by $1.15 to $60.65 per barrel, while gold futures rose by $8.10 to $4,622.80 per ounce [12]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Basic Materials** sector in China, with a preference order for 2026 being **copper/gold > aluminum > lithium > coal > steel** [2][4] - The **MSCI China Materials** index is expected to outperform the **MSCI China** index by **3%** in the first week of January 2026, driven by supply disruptions and mergers and acquisitions [2][4] Company-Specific Insights - **Zijin Mining** is highlighted as the top pick for 2026, with a positive profit alert projecting a **2025 net profit** of **RMB 51-52 billion**, representing a **59-62% YoY increase** [4][9] - **Jiangxi Copper (JXC)** has been upgraded to Neutral (N) due to a positive outlook on copper, despite a recent **40%+ share price surge** that has factored in the acquisition of SolGold [2][5] - **Baosteel** and **Angang Steel** have been downgraded to Neutral (N) and Underweight (UW) respectively, due to low steel margins and weaker-than-expected anti-involution efforts [2][5] Market Dynamics - Supply disruptions are expected to continue, with **South32** placing its **Mozal Aluminum smelter** on care and maintenance in March 2026, and a strike at **Capstone Copper's Mantoverde** mine expected to reduce copper supply by **77kt** [4][9] - The **Chinese base metal demand growth** is forecasted to slow to **2.5%** for copper and **1.5%** for aluminum YoY [4][9] Earnings Forecasts - **4Q25 earnings** for steel companies are projected to be the weakest, with **Angang** and **Baosteel** expected to see earnings declines of **86%** and **33%** respectively [4][11] - **Zijin** and **CMOC** are expected to report solid growth, with **CMOC** anticipated to announce a positive profit alert with a **53% YoY increase** [4][11] Stock Recommendations - **Bullish on copper** and **bearish on steel**; **Zijin** remains the top pick for its copper/gold exposure [5][11] - **Hongqiao** and **Chalco** are recommended as buyers on dips due to the positive correlation between aluminum and copper prices [5][11] Regulatory and Policy Impacts - The **Ministry of Commerce** reinstated steel export licensing from January 1, 2026, which may lead to increased near-term exports and keep global prices under pressure [9] - Regulatory uncertainties in lithium mining rights are highlighted, particularly with the cancellation of mining rights affecting **Tianqi** and **Ganfeng** [9] Commodity Price Forecasts - **Copper prices** are forecasted to reach **$12,000/ton** in 1Q26, while **aluminum prices** are expected to stabilize around **$3,000/ton** [12][14] - **Lithium prices** are projected to increase significantly, with battery-grade lithium expected to reach **$17,500/ton** by 2026 [14] Conclusion - The Basic Materials sector in China is poised for a challenging yet opportunistic year in 2026, with significant variations in performance across different commodities and companies. The focus on supply dynamics, regulatory impacts, and strategic acquisitions will be crucial for investors navigating this landscape.

Core Insights - Commercial Metals Company (CMC) reported strong first-quarter fiscal 2026 results, with year-over-year increases in revenue and earnings, surpassing Zacks Consensus Estimates [1][5][11] - CMC shares have increased by 51.6% over the past year, outperforming the industry and broader market indices [1][3] Financial Performance - CMC achieved revenues of $2.12 billion, reflecting an 11% year-over-year growth, driven by demand in the North America Steel Group and Construction Solutions Group [7] - Earnings per share surged by 142% year-over-year to $1.84, exceeding the Zacks Consensus Estimate of $1.55 [11] - North America Steel margins reached multi-year highs, while Europe Steel Group faced challenges, with adjusted EBITDA margins dropping from 12.3% to 4.4% due to import impacts [8][9] Strategic Acquisitions - CMC completed two acquisitions in December 2025, which are expected to support results in Q2 fiscal 2026 despite incurring acquisition-related expenses [13][14] - The acquisitions are projected to generate annual run-rate synergies of $25-$30 million by year three [18] Market Position and Outlook - The Zacks Consensus Estimate for fiscal 2026 sales is $8.54 billion, indicating a 9.6% year-over-year increase, with earnings expected to rise by 127.5% to $7.12 per share [15] - CMC's long-term growth strategy includes the Transform, Advance, Grow Program, aiming for an annualized EBITDA benefit of $150 million in fiscal 2026 [18] Valuation and Investment Consideration - CMC's valuation is considered attractive compared to peers, with a strong stock performance and improved fiscal results [20][23] - The company holds a Zacks Rank 1 (Strong Buy), suggesting it may be a favorable time to consider adding CMC stock to investment portfolios [23]