EARN25

Steel Stock Stumbles on Guidance Gaff

Cowen chimed in with a bear note

Digital Content Manager
Dec 18, 2020 at 12:19 PM
facebook X logo linkedin


United States Steel Corporation (NYSE:X) is down 5.4% at $17.56 this afternoon, following the company's fourth-quarter forecast of losses of 85 cents per share, which came in lower than analysts' estimated 57 cents per share loss. Cowen chimed in, lowering its price target to $15 from $18.56, warning against some of the steel manufacturer's risks, including changes in fragile supply and demand balance, a volatile global economy, and trade restrictions. 

Today's dip has X set to close back below its 10-day moving average for the first time since early November, though the 20-day still sits directly  below as potential support. While the equity has taken a breather since hitting a fresh annual high of $20 last week, it still sports a 54% year-to-date gain, and an impressive nine-month lead of 234%.

Circling back to analyst attention, the brokerage bunch isn't convinced by X's recent rally. The equity sports just one "strong buy" rating, compared to eight "hold" or worse ratings. Additionally, the 12-month consensus price target of $10.45 is a 40.6% discount to current levels. 

Short interest, meanwhile, has been rolling over, down 5.1% in the last reporting period. The stock is still heavily shorted, with these bearish bets making up 21.2% of its available float. Should more of these bearish bets begin to unwind, a short squeeze could put some wind at the equity's back. 

 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!