Goldman Sachs
Goldman Sachs Group Inc. (NYSE: GS) and Verizon Communications Inc. (NYSE: VZ) reported third-quarter earnings before the bell on Thursday. Reuters

Goldman Sachs Group Inc (NYSE:GS) on Monday upgraded the steel sector to Neutral from Cautious.

"Although volatility associated with this deeply cyclical sector will remain a norm, we believe that investors should start to look beyond near-term headwinds," Analyst Sal Tharani told

"The supply-demand fundamentals for steel are starting to look more appealing, particularly for flat steel, as some supply has been taken out and demand drivers are firmly in place" Tharani said. "Second, our very bearish view on input costs (iron ore) bodes well for steel producers in the long run as we believe that mills should be able to expand margins as raw material prices descend. And lastly, although not part of our base case scenario, recently filed trade cases, if successful, could provide some tailwind."

Goldman upgraded the AK Steel Holding Corporation (NYSE: AKS), United States Steel Corporation (NYSE: X) and Steel Dynamics Inc. (NASDAQ: STLD) to Buy with price targets of $6, $30 and $22, respectively.

Goldman downgraded Reliance Steel & Aluminum Co. (NYSE: RS) to Neutral.