Zacks Investment Research upgraded shares of United States Steel (NYSE:X) from a hold rating to a buy rating in a research report report published on Monday, Zacks.com reports. The brokerage currently has $23.00 price objective on the basic materials company’s stock.
According to Zacks, “Earnings estimate for U.S. Steel for the fourth quarter of 2020 have been going up over the past month. U.S. Steel anicipates adjusted loss per share for the fourth quarter to be narrower on a sequential comparison basis. The company should gain from its efforts to improve its cost structure and operations. U.S Steel's strategic investments should also boost its capability and efficiency. Its Big River investment is likely to contribute to its margins. The company has also outperformed the industry over a year. The company’s strong liquidity position will also allow it to meet its near-term debt obligations. However, U.S. Steel is facing significant headwind in its tubular business. While market conditions have somewhat improved of late, sustained headwinds are likely to hurt Flat-Rolled margins.”
A number of other research analysts also recently issued reports on X. Deutsche Bank Aktiengesellschaft raised United States Steel from a sell rating to a buy rating in a report on Friday, January 8th. Credit Suisse Group restated a sell rating on shares of United States Steel in a report on Tuesday, September 22nd. ValuEngine cut United States Steel from a strong-buy rating to a buy rating in a report on Thursday, October 1st. Morgan Stanley assumed coverage on United States Steel in a research note on Wednesday, December 9th. They issued an equal weight rating and a $17.00 price target on the stock. Finally, Argus raised United States Steel from a hold rating to a buy rating and set a $22.00 price target on the stock in a research note on Wednesday, December 9th. Three analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $11.33.
United States Steel (NYSE:X) last announced its earnings results on Thursday, October 29th. The basic materials company reported ($1.21) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($1.39) by $0.18. United States Steel had a negative return on equity of 18.78% and a negative net margin of 16.25%. The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same quarter in the previous year, the business earned ($0.21) earnings per share. The company’s revenue for the quarter was down 23.8% compared to the same quarter last year. As a group, equities research analysts anticipate that United States Steel will post -5.57 earnings per share for the current fiscal year.
Several hedge funds have recently made changes to their positions in the company. Amundi Pioneer Asset Management Inc. lifted its position in United States Steel by 1.8% during the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 159,943 shares of the basic materials company’s stock worth $3,117,000 after buying an additional 2,795 shares in the last quarter. Federated Hermes Inc. lifted its position in United States Steel by 62.0% during the 2nd quarter. Federated Hermes Inc. now owns 29,015 shares of the basic materials company’s stock worth $209,000 after buying an additional 11,102 shares in the last quarter. Baird Financial Group Inc. raised its holdings in shares of United States Steel by 50.8% in the 2nd quarter. Baird Financial Group Inc. now owns 25,945 shares of the basic materials company’s stock valued at $228,000 after purchasing an additional 8,745 shares during the period. Vanguard Group Inc. raised its holdings in shares of United States Steel by 28.8% in the 2nd quarter. Vanguard Group Inc. now owns 20,874,015 shares of the basic materials company’s stock valued at $150,711,000 after purchasing an additional 4,663,268 shares during the period. Finally, Stifel Financial Corp raised its holdings in shares of United States Steel by 4.9% in the 2nd quarter. Stifel Financial Corp now owns 37,940 shares of the basic materials company’s stock valued at $274,000 after purchasing an additional 1,760 shares during the period. 60.36% of the stock is owned by institutional investors.
About United States Steel
United States Steel Corporation produces and sells flat-rolled and tubular steel products primarily in North America and Europe. It operates through three segments: North American Flat-Rolled (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The Flat-Rolled segment offers slabs, strip mill plates, sheets and tin mill products, as well as all iron ore and coke.
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