Worthington Steel Inc

WS is in an early Stage 1 consolidation following a terminal decline, showing structural repair via a mid-July bullish pivot and rising short-term EMAs. Price is holding above the 9/21 EMA region within a base and approaching 50 DMA resistance. With oversold context and improving momentum, we recommend buying now on pullbacks into the rising EMA support zone.

• ↑Direct automotive shipments rose 26% YoY, boosting segment revenue.
• ↑Klockner acquisition adds scale and ~$150M in EBITDA synergies.
• ↓Leverage jumped after Klockner deal, raising debt servicing risk.