Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - KeyBanc maintained its Overweight rating and $36.00 price target on Worthington Steel Inc (NYSE:WS) following the company’s first-quarter fiscal 2026 results. According to InvestingPro data, the stock is currently trading at a P/E ratio of 14.45x with diluted earnings per share of $2.35 over the last twelve months.
The investment firm expressed confusion about the stock’s recent sell-off but indicated it remains interested in the company’s strategy to improve its product mix over the medium to long term. InvestingPro data shows the stock has declined over 13% in the past week, though the company maintains a GOOD overall financial health score.
KeyBanc maintained its earnings per share estimates for fiscal years 2026 and 2027 despite acknowledging ongoing challenges with galvanized spreads over hot-rolled coil steel.
The firm cited Worthington Steel’s valuation, both on an absolute basis and relative to peers, as part of its rationale for maintaining the Overweight rating.
KeyBanc suggested that successful execution of the company’s electrical steel growth initiatives could potentially push the stock above $40 in the longer term.
In other recent news, Worthington Steel Inc. reported its first-quarter earnings for fiscal year 2025, exceeding expectations. The company achieved an adjusted earnings per share (EPS) of $0.77, surpassing the projected $0.73. Revenue for the quarter was $872.9 million, representing a 5% increase compared to the same period last year. These results indicate a strong financial performance for the company. Despite the positive earnings, the stock experienced a decline, attributed to investor concerns over potential future inventory losses and mixed market conditions. The earnings announcement comes amidst a backdrop of fluctuating market sentiments. Analysts continue to monitor the company’s performance closely, with some expressing caution regarding the company’s future prospects.
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