ASTL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Algoma Steel Group Inc (ASTL) does not present a strong buy opportunity for a beginner, long-term investor at this time. While the stock has shown a recent price increase and potential positive catalysts, the challenging Canadian steel market dynamics, declining revenue, and lack of strong trading signals suggest a cautious approach. Holding the stock or waiting for further clarity on financial performance and market conditions is recommended.
The MACD is positive and expanding, indicating a bullish trend. RSI is neutral at 57.867, suggesting no overbought or oversold conditions. Moving averages are converging, showing no clear trend. Key resistance is at 5.206, with support at 4.37. Recent price action shows a 5.84% regular market increase and a 2.04% post-market gain, but pre-market change was -1.30%.
Potential rollback of U.S. steel and aluminum tariffs, which could benefit Algoma Steel. Recent price increase of 11.1% following tariff rollback news.
Challenging Canadian steel market dynamics due to tariffs. Stock is still down 45% from a year ago. Revenue dropped by 12.73% YoY in the latest quarter.
In 2025/Q3, revenue dropped 12.73% YoY to $523.9M. Net income improved significantly but remains negative at -$485.1M. EPS increased to -4.46, up 355.10% YoY. Gross margin dropped to -3.38%, down 41.01% YoY, indicating operational challenges.
Jefferies initiated coverage with a Hold rating and a C$6 price target. The analyst notes the company's transition to higher-value products but highlights the challenging Canadian steel market dynamics as a reason for the Hold rating.
