Shares of British steelmaker EVRAZ plc (LON: EVR) are up 22.5%, and many wonder whether the shares will keep rising for the foreseeable future so that they can buy.
Well, nobody can tell whether a stock will rise or fall, especially since short-term price moves are primarily driven by swings in investor sentiment rather than a company’s fundamentals.
Regardless, the company, which mostly operates in Russia, has solid fundamentals. Its 2020 profits surged to $848 million compared to the $326 million recorded in 2019 despite the tough year that most businesses faced due to the coronavirus pandemic.
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Evraz has started the year in high gear, given that it recently signed a two-year agreement with TMK to supply 160,000 tonnes of rolled pipe billets to the company.
It is unclear whether Vanadium sales shall pick up this year, given the 46% drop witnessed last year due to lower demand for the malleable transition metal.
Form a technical standpoint, Evraz shares are trading slightly off their all-time high of 710p and could rise to that point. Depending on its financial performance, we could see its shares make new all-time highs later this year.
Evraz shares have been on a sustained rally since March 2020, as shown in the weekly chart below, and I wouldn’t be surprised if we got a significant pullback soon before another rally begins.
Steel demand is expected to surge this year as the global economy recovers, and any positive results from the company could trigger a rally above its all-time highs. This is a solid large-cap stock, and this is unlikely to change in the medium-term.
Evraz share price.
Evraz shares are up 22.5% this year, is there more upside potential in the foreseeable future?