The steel producer continues its extended run into the money.
The post Why the BlueScope Steel (ASX:BSL) share price hit a 52-week high today appeared first on The Motley Fool Australia. –
The BlueScope Steel Limited (ASX: BSL) share price continues its hot run into the money after setting a new 52-week high in afternoon trading.
As a result, BlueScope steel shares set their new 52-week high today, topping previous highs in July and back in May.
There is no market sensitive information released today. Nonetheless, let’s capture the tailwinds behind the BlueScope Steel share price of late.
What has BlueScope been up to lately?
BlueScope released its preliminary unaudited results on 27 July for the second half of FY21. In it, the steel producer expects a record result for the period to 30 June 2021.
As a result, it upgraded its earnings before interest and tax (EBIT) forecast to $1.19 billion for the second half and $1.72 billion for FY21.
Moreover, BlueScope’s Australian steel products (ASP) arm “delivered substantially better results”, by growing approximately 60% this year to date.
Accordingly, sales volumes reached a total of 1.3 million tonnes at ASP, which is the highest level since 2008.
In addition, investor sentiment has been positive for the BlueScope Steel share price over the last few months.
Further, whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of around 4.3% over the past month, BlueScope shares have climbed a further 16.5% into the green over this time.
Given this trot up north on the charts, it stands to reason that the current investor sentiment on BlueScope shares is bullish. Another point to consider is, that BlueScope shares are now trading in an uptrend that started in March 2020.
BlueScope Steel share price snapshot
The BlueScope Steel share price has posted a return of 42% over the year to date, extending the previous 12 month’s climb of 100%.
These returns have outpaced the broad index’s gain of around 25% over the past year. At the time of writing, BlueScope has a market capitalisation of $12.2 billion.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.