Why the BlueScope Steel (ASX:BSL) share price hit a 52-week high today

The steel producer continues its extended run into the money.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

To illustrate, BlueScope shares hit their previous record high on 27 July, after a run of bullish momentum.

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.

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.

More on Share Gainers

Rising gold share price represented by a green arrow on piles of gold block.
Share Gainers

2 ASX All Ords stocks that would already have more than doubled your money this year

These ASX All Ords stocks have gained 126% and 145% year to date. But how?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an historic day for the ASX, with the market setting a new record.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fletcher Building, Johns Lyng, Pilbara Minerals, and Zip shares are charging higher

These shares are having a strong session on hump day. But why?

Read more »

A cool dude looks back at the camera while ziplining above the treetops.
BNPL shares

Zip share price rockets 19% on full-year earnings upgrade

Surging again today, Zip shares are now up 127% since their recent April lows.

Read more »

happy teenager using iPhone
Share Gainers

Up 96% since April, should I still buy Life360 shares today?

A leading expert offers his verdict on the growth outlook for the surging Life360 share price.

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lucrative return to trading for investors this Tuesday.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Austal, Botanix, DroneShield, and NextDC shares are storming higher today

These shares are starting the week with a bang. But why?

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »