United States Steel
(X - Get Report)
is an integrated steel producer of flat-rolled and tubular products with major production operations in North America and Europe. The company operates in four business segments: flat-rolled products, U. S. Steel Europe, tubular products and other businesses such as transportation services and real estate activities. The stock accumulated 4.2% last week.
The company is scheduled to release its second quarter 2011 results on July 26, 2011. Analysts expect the company to reverse the trend of nine consecutive quarterly losses and post its first profit. Higher pricing, offsetting raw material costs, and improved demand are likely to drive profit.
As per the American Iron and Steel Institute, U.S. steel production increased 1.7% to 1.88 million tons last week to reach 33-month highs as steel mills operated at an average capacity utilization rate of 76.8%. Additionally, the government reports that exports increased 11.4% year-over-year to 1.14 million tons in May 2011, led by significant improvement in the NAFTA region.
Of the 17 analysts covering the stock, 47% suggest a buy while 41% recommend a hold. On average, analysts estimate 21.1% upside to $54.27 in value from current levels.
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