Within Spanish equities, two of the hottest stocks are those of the steel sector, Arcelor and Acerinox. Especially since both companies are especially exposed to the rate war that exists these days with this raw material. To the point that they are showing volatility above that represented by the values that make up the selective index of the national stock market, the Ibex 35. In any case, these are two options to consider in the coming days. Because they have a very important revaluation potential. Although they are operations that are not risk-free due to the special characteristics of the two securities.
Both Arcelor and Acerinox are followed by a good number of small and medium investors who test how their share prices can evolve during this year. Being integrated into an eminently cyclical sector, they can take advantage of the global growth of the economy. Because in these scenarios they respond much better than other equities. Although on the contrary, more care must be taken in recessive periods of the economy since their behavior is much worse. With very bulky falls that can create more than one problem in your income statement.
There are several financial analysts who think that the materials they still go to continue positive. In this sense, Arcelor and Acerinox could pick up a better sentiment from the market. On the other hand, it should not be forgotten that in the next few years and in the short term, two companies are particularly exposed to the rate war. They have more risks than other securities that are not exposed to these swings in the financial markets. Although the biggest problem lies in which of the two companies to take positions from now on.
Arcelor and Acerinox: fixes
If for something both stock market proposals have distinguished themselves in recent days, it is because they have experienced severe falls in the conformation of their respective prices. In some cases it can be taken as a added risk to open positions in these values. And in others, as a real buying opportunity, but at much more competitive prices than before. Although with the consequent differences that one and another company present. But they are marked by the same constants in their quotation and why not say it even in their line of business, which is practically the same.
In this sense, if you are willing to take the risk, it can be an excellent idea to take advantage of these falls. Although Acerinox may be the one with a more open scenario so that you can carry out your stock market operations in the coming days. To the point that it presents a much more defined technical aspect than in the case of Arcelor. In any case and respecting this advice, it can be said that medium and long term both are a good investment opportunity. You have a lot to gain in both operations and the reward may motivate you to undertake this risk that comes with starting these movements right now.
Different geographical areas
When it comes to analyzing which of the two listed companies is more sensitive to boost your equity operations, there is one particularly important piece of information. It is none other than the origin of your business lines. Well, in this sense Acerinox represents more the national interests in steel production. And until it is more exposed to specific movements in the Spanish economy. With a much more direct relationship with the evolution of all national stock indices. In this sense, do not doubt that their divergence is significantly less.
For its part, the steel company Arcelor is much more exposed to global conditions since do not forget that we are dealing with one of the large multinationals in the sector. With a very important weight, both in the European Union and in other geographical areas of special relevance such as the case of China. From this perspective, they present different management models and it can be said that also investment models. Although the base of your business is practically the and there are no differences of special relevance. Beyond its processes in the formation of prices.
General context of bags
So that you can tell yourself by one or another steel company, it will not hurt to analyze the general context in which you move. It will help you determine the choice with greater security guarantees and above all to protect your possible movements in the financial markets. Well, in this sense, it may be that in the short term the stock markets have hit the ground and a sustained rebound may develop in the next few days. If this were the scenario, both Arcelor and Acerinox could be purchase options. Although perhaps the first had a greater upward journey due to the special characteristics of the value.
On the other hand, it will also be very interesting to see what will happen to both values when the indicators reach a certain level above. It will be the moment when you have to decide whether to undo positions or try to further improve profitability. Despite the fact that this operation can be very expensive since the declines in this class of so cyclical values are very pronounced. To the point that you can leave a lot of euros on the way. In any case, it is a risk that you have to take with these two companies in the powerful steel sector.
Remarkable upside potential
According to the predictions of the most famous financial market analysts, there is one thing that both Arcelor and Acerinox agree on. And it is none other than presents a very important revaluation potential. Which in any case moves on margins that go from 8% to about 20%. And in any case, higher than those presented by other values of first importance in national and international equities. In this sense, it is true that you have more to gain than lose. But always with great caution in the operations that you carry out from these precise moments.
However, the fact that these revaluation potentials have been awarded does not necessarily mean that they will be fulfilled in the near future. If not, on the contrary, you should take it more as a endpoint, no more no less. With what this factor can indicate in the face of the conformation of prices. From this perspective, the recommendation will clearly be to buy and that in some class of securities even aggressive to take advantage of this scenario in prices.
Wide differences in prices
If for something these two important ones are distinguished from national and international equities, it is because they present a very well defined price. On this basis, they are some of the values that rise or fall the most in each trading session. With very striking percentages that are close to 5%. What is conducive to trading operations and that operations can be profitable in a very short space of time. In this way, if operating very fast it can be a clear alternative to make the economic contributions profitable. As an additional strategy to defend your interests as a small and medium investor.
This fact makes these two values very conducive to short-term operations. Despite the fact that Arcelor and Acerinox are securities that offer shareholders a dividend. Although under a not excessively high amount, always below 3%. Slightly lower than the rest of the securities that make up the selective index of the national stock market, Ibex 35, with a average profitability around 4%. Not in vain this is another factor that you should take into account to enter the positions of these steel companies.
Discreet volume of recruitment
On the other hand, they are not companies with excessive capitalization, but are below the average presented by the Ibex 35 values. Not surprisingly, it does not stand out especially for a massive exchange of titles between buyers and sellers. Although with complete liquidation if you are going to open positions in any of these stock market proposals. That is, you will not have excessive problems to adjust the prices of purchases and sales. As is the case with some of the small and mid-capitalization securities that are integrated into the Spanish continuous market.
In any case, it is an option you have to enter equities from now on. Knowing at all times that the risks of operations are more latent than in other options offered by the national stock market. Where the fluctuations in prices will be present throughout the year and that can determine the strategy that you are going to use with your portfolio. In any case, they are the only companies in the steel sector that are included in the Spanish equity indices. Without there being a sector of this segment as such. That is, you have very few proposals to choose from if you bet on this investment strategy.