United States Steel (X) Stock: Weak On High Volume Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified United States Steel as such a stock due to the following factors:
- X has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $188.5 million.
- X has traded 841,460 shares today.
- X is trading at 2.09 times the normal volume for the stock at this time of day.
- X is trading at a new low 4.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on X:
United States Steel Corporation produces and sells flat-rolled and tubular steel products in North America and Europe. It operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The stock currently has a dividend yield of 0.9%. X has a PE ratio of 32.2. Currently there are 5 analysts that rate United States Steel a buy, 3 analysts rate it a sell, and 4 rate it a hold.
The average volume for United States Steel has been 9.1 million shares per day over the past 30 days. United States has a market cap of $3.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.09 and a short float of 29.5% with 5.19 days to cover. Shares are down 10.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates United States Steel as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income increased by 1.9% when compared to the same quarter one year prior, going from $270.00 million to $275.00 million.
- Net operating cash flow has significantly increased by 3600.00% to $245.00 million when compared to the same quarter last year. In addition, UNITED STATES STEEL CORP has also vastly surpassed the industry average cash flow growth rate of -47.05%.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, UNITED STATES STEEL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for UNITED STATES STEEL CORP is currently extremely low, coming in at 14.73%. Regardless of X's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.75% trails the industry average.
- X has underperformed the S&P 500 Index, declining 8.98% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full United States Steel Ratings Report.
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