NEW YORK (TheStreet) -- U.S. Steel (X) - Get Report stock is declining by 1.20% to $6.59 in afternoon trading on Thursday, as Argus downgraded shares after the company reported its 2015 fourth quarter financial results yesterday.
Before Wednesday's market open, the steel producer posted an adjusted loss of 23 cents per share on revenue of $2.57 billion. Analysts had forecast for a loss of 85 cents per share on revenue of $2.53 billion.
The company indicated that it might burn roughly $200 million in cash during 2016 if market conditions don't improve.
In light of the results, Argus downgraded the stock to "hold" from "buy."
Shares are fully valued at their current prices, the firm wrote in a note, Barron's reports.
If the stock continues to move in line with commodities' prices, shares could fall toward $4, Argus continued. However, if commodities prices stabilize, shares could move back toward resistance around $8 to $10.
JPMorgan argues that the first half of 2016 will be "tough," but the second half should improve as a decline in domestic steel supply results in a rebound in domestic steel prices, Barron's adds.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
U.S. Steel's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: X
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.