NYSE:X

United States Steel (X)

54.85
+0.01 (0.02%)
as of Jun 17, 2025, 7:59:54 pm Market Open.
2 watching
0
DON'T BUY

Not a company he knows but he would caution on global steel.

DON'T BUY
Is not on his list at all. US Steel companies don’t come on to his radar.
BUY
Chart looks really good here. There was a strong decline in 2011 and a chart now shows a reversal showing strength and volume. There is a clear uptrend. Whenever there is a selloff, there is some additional buying which creates an upward channel. Seems to be consolidating a bit right now. If it breaks out above $30, he thinks it can go up to $38 pretty quickly. A stop/loss should go in around the $27 mark.
DON'T BUY
Not crazy about steel socks because if China is slowing they will not do very well. It is forming a base, however. The market has confirmed it wants to take it higher, but he would be cautious.
COMMENT
Steel has a really strong seasonality. It normally bottoms around October each year, moves higher until the end of December and then for a month or 2 tends to take a little bit of correction. Right around this time of year, it tends to move higher right through until May. This is the time a year when it typically takes a dive, which is a buying opportunity. The move in May could take you to the bottom of the trading range, possibly the $35 level.
DON'T BUY
If the global economy is slowing and European situation persists, this stock is probably not going to do very well. Below the 52-week average.
DON'T BUY
Not a good dividend yield and there are better ways to get exposure to the notion global growth resuming. Have a pretty heavy debt burden on their balance sheet.
COMMENT
Peaked at the end of February and it’s been selling off ever since. If you think that growth is going to hold up an be fairly respectable, it will do fine. On any weakness at all it will go down a lot further.
DON'T BUY
This is a cyclical and for the last 6 weeks there has been a slowdown in cyclicals. His model price is $41.17, a negative 10%-11%. Risky here.
BUY ON WEAKNESS
One of the biggest steel manufacturers globally. Demand for steel depends on global recovery and infrastructure in the emerging markets, which are doing quite well. Their challenge will be input costs. Coal and iron ore prices are skyrocketing. Fortunately they have a very good hedge position and internally supply their own inputs. Looking at their peak earning power, they are very cheap.
DON'T BUY
Imagines that steel prices will continue to move up. Ranks midway in his material space model. There are better names to own.
BUY
Depends on China’s economic growth next year. If you are comfortable with Chinese growth, in spite of the tightening they are doing, you can be comfortable with this one.
DON'T BUY
Has been sideways for a good part of the summer. Below the 200 day moving average. Missed their earnings last quarter.
DON'T BUY
(Market Call Minute.) Not positive on steel stocks.
DON'T BUY
Any infrastructure program in North America is going to help and could very well get back to $70. However, demand for steel is not growing.
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