Can U.S. Steel Stock Beat the Market in 2021?

X qualified for a spot on Schaeffer's top stock picks for Summer 2021

May 14, 2021 at 12:41 PM
facebook X logo linkedin


United States Steel Corporation (NYSE:X) has nearly tripled over the past 12 months since the stock's price reached a multi-year low of $6.58 back on July 9. Year-to-date, the shares are up 51.5%, but there could be more room for the steel giant to run.

United States Steel recently declared a dividend of $0.01 per share of US Steel common stock. The dividend is payable on Wednesday, June 9. The company currently offers a forward dividend of $0.04, which is equivalent to a dividend yield of 0.14%.

X has struggled to maintain strong fundamentals, but US Steel stock could be shaping for some short-term gains. US Steel stock has an extremely low forward price-earnings ratio of 5.95 and has increased quarterly revenues by 75% since the second quarter of 2020. On the bottom-line, United States Steel has maintained a steady growth trajectory since the start of the COVID-19 pandemic. The company has added $680 million in net income since the second quarter of 2020, taking its net profits to $91 million in the first quarter of 2021.

On a long-term basis US Steel’s revenue has declined by more than 30% since 2018 and its net income has fallen by $2.28 billion during the same time period. Additionally, X ended 2020 with $1.165 billion in net losses. Those are some dicey numbers, there's no getting around it. But when you look at X's pent-up pessimism that can be unwound, it seems worth taking a flier on the stock. 

For starters, a healthy 19% of X's total available float is sold short. And among analysts, only two rate the stock a "strong buy," the other six doling out "hold" or worse ratings. Factor in the equity's ascending 40-day moving average as support and legislative tailwinds from President Biden's infrastructure bill, and you have an intriguing contrarian summer pick.

X Stock Chart

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI