Reasons To Go Long from AK STEEL

Though AK Steel (NYSE:AKS) is down more than 56% this year, it looks like the company is set for a turnaround due to a multitude of reasons. For instance, at the end of October, AK Steel surprised analysts and investors alike by posting better-than-expected results. More importantly, the company was able to post a profit of $0.04 per share, as opposed to an expectation for a loss of $0.08 per share. This is especially commendable if we consider that the end-market in which AK Steel operates is not conducive.

In my opinion, AK Steel will be able to deliver further growth going forward as the company is ticking the right boxes as far as its cost reduction moves and technology improvements are concerned. Additionally, AK Steel will also benefit from an improvement in the steel market conditions in the U.S. and abroad. Let's take a look at the reasons why AK Steel's financial performance will improve in the long run.