Q2 STOCKS TO BUY

U.S. Steel Set for Big Drop After UBS Screams "Sell"

U.S. Steel stock hit a multi-year low last week

May 8, 2019 at 9:20 AM
facebook X logo linkedin


UBS downgraded United States Steel Corporation (NYSE:X) stock to "sell" from "neutral," saying short-term investments will not stop the company from losing market share over the next several years. Specifically, the brokerage firm said, "X is investing significantly in its asset base to remain competitive, but the result is negative free cash flow over three years."

This is just the latest in a series of bear notes that have hit the steel stock this week, with no fewer than four firms lowering their U.S. Steel price targets already -- including Morgan Stanley to $19 from $21 yesterday. Overall, 11 of 13 covering analyst maintain a "hold" or "sell" rating on X, while the average 12-month price target of $19.57 is a 19.3% premium to last night's close at $16.41.

And in reaction to today's sell rating, U.S. Steel stock is trading 4.2% lower in electronic trading, set to open at $15.72 per share. It's already been a rough year for the equity, which is down 10% year-to-date. Plus, the security's recent rally off its May 2 multi-year low of $14.16 ran out of steam near its descending 20-day moving average.

Bearish betting has been ramping up on X shares, too. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 0.69 ranks in the 73rd annual percentile. While this shows that calls have outnumbered puts on an absolute basis, the elevated ranking indicates the rate of put buying relative to call buying has been accelerated.

Plus, short interest on U.S. Steel surged 56.5% in the two most recent reporting periods to 22.18 million shares. This represents 12.9% of the stock's available float, or 2.3 times the average daily pace of trading.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter