Admittedly, most of us for the last few weeks, as far as steel goes anyway, have been focused on a potential U.S. Steel (NYSE:X) deal. But there’s another new deal in steel that showed up largely out of nowhere. It’s from solar stock Array Technologies (NASDAQ:ARRY), and it sent its shares rocketing up over 8% in Tuesday afternoon’s trading session.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The deal Array Technologies struck was with none other than Steel Dynamics (NASDAQ:STLD), who set up a long-term agreement with Array to offer up a supply of coil steel for the various projects Array has running in the United States. Steel Dynamics will bring out the coil in question from steel mills in Texas, Indiana, and Mississippi to help provide the quantities Array Technologies was after. The steel in question will go into single-axis solar trackers.
Array looks for this new deal to provide not only a reliable source of steel but also allow it to meet several of its internal ethics policies. The biggest of which is to use at least 85% U.S.-sourced steel, among other materials, in its trackers. The steel will not only go into structural framework but also into gears, levers, mounts, and similar components.
Array Technologies also has plenty of analyst support. With 11 Buy ratings, and one dissenting Sell, analyst consensus calls Array Technologies stock a Strong Buy. Further, with an average price target of $30.50, Array Technologies stock offers investors 19.37% upside potential.
