BSL tops "5 stocks for Aussies to watch over the next 12 months"

https://www.investsmart.com.au/investment-news/5-stocks-for-aussies-to-watch-over-the-next-12-months/143926

"We asked five investment experts to name just one stock they thought we should be keeping an eye on over the next 12 months, and why.

Here’s what they came up with:

1. BlueScope Steel (BSL)

When it comes to the US-China trade war, our steel sector has managed to avoid most of the in-fighting, with policies from both sides actually benefitting our steel producers.

According to Eleanor Creagh, Markets Strategist at Saxo Capital Markets, that’s put BlueScope in a strong position for the year ahead.Australia was offered a free pass when Trump imposed steel tariffs on other countries, while China has been cutting down on local production since 2015. Creagh says both of these have factors have lowered global competition.

“BlueScope’s free cash flow position is set to increase into 2019 to as much as AU$1 billion. This could result in BlueScope announcing another buyback in the first half of 2019,” says Creagh.

She also points to the company’s strong price to earnings ratio, which compares well to the ASX200.“Therefore, it’s clear the increased returns are not being factored into the current valuation.”