Why United Rentals and Steel Stocks Soared in June
The 6.5% gain for the S 500 index in June was its best monthly return since October. But stocks in the industrial sector did even better. Three standouts were construction equipment supplier United Rentals (NYSE: URI) and steelmakers (NYSE: NUE) and Cleveland-Cliffs (NYSE: CLF).
United Rentals shares soared 33.4% for the month while Nucor and Cleveland-Cliffs returned 24.2% and 20.7%, respectively, according to data provided by S&P Global Market Intelligence. It was a combination of macroeconomic and sector-specific developments that drove those outsize gains.
The main catalyst driving investor excitement in leading industrial companies is optimism for the economy and investments for infrastructure projects. At its Investor Day presentation on May 31, United Rentals pointed out several strong tailwinds it sees over the next five to 10 years and beyond. Large construction projects are being supported by funds allocated from the infrastructure bill, domestic growth in semiconductor manufacturing, electric vehicle and battery plants, and liquified natural gas (LNG) and renewable energy investments.
Source Fool.com
Nucor Corp. Stock
Our community is currently high on Nucor Corp. with 4 Buy predictions and 1 Sell predictions.
With a target price of 184 € there is a slightly positive potential of 15.94% for Nucor Corp. compared to the current price of 158.7 €.
