United States Steel Corporation (NYSE: X) manufactures and sells steel products. It operates steel production facilities in the US and Central Europe. The company supplies various high-value-added products to customers in the construction, automotive, containers, electrical, energy, industrial, and appliance industries.
It was founded in 1901 and was the largest business enterprise to launch in the US. The company’s headquarters are in Pittsburgh, PA.
US Steel Stock Performance
The stock had a good run in 2023 and is up 44.61% year-to-date. At the tail end of November 2023, the stock rose slightly on rumors that five parties would make a bid for the steel company. ArcelorMittal (NYSE: MT) and Cleveland-Cliffs (NYSE: CLF) are among the bidders.
Thus far, no final sale has been announced. However, according to analysts, parties are likely to push for a deal to be completed before the holidays. The company rejected a $7.3 billion cash and stock bid by Cliffs in August.
While it has been trending upwards for most of 2023, the stock recently declined 0.88% at the end of the December 5, 2023 trading session.
One reason for the slight tumble could be the recent report by the American Iron and Steel Institute (AISI). The report showed that in the week ending on December 2, 2023, the adjusted year-to-date steel production was down 0.3% compared to last year.
Additionally, US Steel recently announced the indefinite shutdown of its Illinois furnace, potentially leading to over 1,000 workers being laid off. Analysts speculate it could be due to the fluctuation of steel prices.
Other analysts speculate the cause is the disruption to the global supply chain. The decision could lead to colossal supply chain disruptions in the US, as the company is one of the biggest steel suppliers in various sectors.
US Steel stated that the decision would be implemented as soon as January 28. The company blames the softening demand for its products on the automotive industry. Production in the auto industry has been affected by the ongoing United Auto Workers strike.
United States Steel Corporation Stock Forecast
The United States Steel Corporation released its Q3 2023 earnings report on October 26, 2023. In the report, the company reported an EPS of $1.40, beating analysts by 21.90%. Its revenue of $4.43 billion also exceeded expectations during the quarter by 4.00%. However, revenue was down 14.84% year-over-year.
Analysts forecast a revenue of $18.39 billion for FY23, a 12.69% decline from FY22. They also predict an EPS of $0.20 for Q4, 2023, a 74.81% decline from last year.
Based on these figures, stock analysts have given United States Steel Corporation (X) stock a hold rating. Their highest price target is $40, while the lowest is $27. X’s average price target is $33.50, a 7.48% decline based on the last price of $36.21.
Should You Buy US Steel Stock?
X stock has been trending upwards for most of 2023, up 44.61% year-to-date. While it is going through a rough patch, the stock is a good pick for value investors. Looking at its financial data, the United States Steel Corporation has excellent financial health. Consequently, it could outperform the market.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
One thought on “United States Steel Corporation (NYSE: $X)”
Comments are closed.