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Investors interested in Steel - Producers stocks are likely familiar with Ternium S.A. (TX) and Steel Dynamics (STLD).
Ternium (NYSE: TX - Get Free Report) and North American Construction Group (NYSE: NOA - Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings. Dividends Ternium pays an annual dividend of
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Honda, National Energy Services, Ternium, Avnet and Star Bulk stand out as value stocks with earnings yields above 10% and strong EPS growth.
Ternium is rated a buy, supported by a 14.5% upside to a $65.52 fair value using DCF analysis. Completion of the $4B Pesqueria project will boost TX's steel capacity, cost competitiveness, and EBITDA by 5–10% from 2028 to 2030. CapEx is set to decline, driving free cash flow yield above 15% and enabling a sustainable 6–7% dividend yield.
Ternium offers compelling upside, driven by robust Mexico steel demand and the transformative Pasqueria expansion targeting USMCA automotive clients. Q2 showcased strong operational momentum: Mexican shipments rose 5% QoQ, revenue per ton increased 6%, and adjusted EBITDA surged 50% to $717 million. Pasqueria's delayed start to early 2027 and ongoing high capex introduce execution and cash flow risks; Brazil and Argentina remain demand headwinds.
Unlock your portfolio value by investing in high earnings yield stocks like Ternium, Halozyme, POSCO and Talos Energy.
Ternium (TX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).