Should I Buy WS? WS 2026 Analysis

Should You Buy Worthington Steel Inc (WS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

40.240

1 Day change

0.22%

52 Week Range

44.000

Analysis Updated At

2026/01/26

Worthington Steel Inc (WS) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the company has shown strong financial growth in its latest quarter and analysts have raised the price target, the technical indicators suggest the stock is overbought, and there are no significant trading signals or catalysts to support immediate entry. Additionally, the options data and stock trend analysis indicate limited short-term upside potential.

Technical Analysis

The stock is currently in an overbought condition with an RSI of 81.838. The MACD is positive but contracting, indicating a potential slowdown in momentum. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading above its pivot level of 39.514, with resistance levels at 42.623 and 44.544. However, the overbought RSI suggests caution for immediate entry.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Financial performance in Q2 2026 shows strong growth: Revenue up 17.98% YoY, Net Income up 46.88% YoY, and EPS up 48.00% YoY.
Analysts have raised the price target to $47, citing long-term EPS potential from the Klockner & Co. acquisition.

Neutral/Negative Catalysts

RSI indicates overbought conditions, which could lead to a short-term pullback.
Options data shows low put-call ratios, suggesting limited immediate bullish sentiment.
Stock trend analysis predicts a potential decline of -3.04% in the next week and -1.16% in the next month.

Financial Performance

In Q2 2026, Worthington Steel reported strong financial growth: Revenue increased to $871.9M (+17.98% YoY), Net Income rose to $18.8M (+46.88% YoY), and EPS improved to $0.37 (+48.00% YoY). However, Gross Margin slightly declined to 10.69 (-1.29% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

KeyBanc has raised the price target from $41 to $47 and maintains an Overweight rating, citing long-term growth potential from the Klockner & Co. acquisition. However, the elevated net debt due to the acquisition may deter conservative investors.

2 Analyst Rating

Wall Street analysts forecast WS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WS is 39 USD with a low forecast of 39 USD and a high forecast of 39 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 40.150

Low

Averages

High

Current: 40.150

Low

Averages

High

KeyBanc

Overweight

maintain

$41 -> $47

AI Analysis

2026-01-23

Reason

KeyBanc

Price Target

$41 -> $47

AI Analysis

2026-01-23

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Worthington Steel to $47 from $41 and keeps an Overweight rating on the shares. Post Worthington's announcement that it has entered into an agreement to acquire Klockner & Co. and the firm's discussion with management, KeyBanc is providing additional thoughts. With the transaction expected to close in the second half of 2026, the firm's estimates are unchanged. While the deal creates elevated net debt before deleveraging efforts, KeyBanc believes aggressive small-cap growth investors will be attracted to Worthington's tremendous long-term EPS potential with KCO.

KeyBanc

Overweight

maintain

$34 -> $36

2025-09-16

Reason

KeyBanc

Price Target

$34 -> $36

2025-09-16

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Worthington Steel to $36 from $34 and keeps an Overweight rating on the shares. The firm cites FY26-FY27 estimate revisions, improved auto customer sentiment, and potential for Worthington Steel to make larger accretive acquisitions over the next 6-12 months.

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WS Should I Buy

WS Should I Buy

Should You Buy Worthington Steel Inc (WS) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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