Trade-Ideas LLC identified

United States Steel

(

X

) as a pre-market laggard 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 $240.0 million.
  • X traded 28,778 shares today in the pre-market hours as of 9:03 AM.
  • X is down 2% today from yesterday's close.

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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 1.2%. Currently there are 2 analysts that rate United States Steel a buy, 6 analysts rate it a sell, and 6 rate it a hold.

The average volume for United States Steel has been 16.6 million shares per day over the past 30 days. United States has a market cap of $2.5 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.66 and a short float of 32.5% with 2.73 days to cover. Shares are up 126.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates United States Steel as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 353.3% when compared to the same quarter one year ago, falling from -$75.00 million to -$340.00 million.
  • Currently the debt-to-equity ratio of 1.61 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with the unfavorable debt-to-equity ratio, X maintains a poor quick ratio of 0.84, which illustrates the inability to avoid short-term cash problems.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, UNITED STATES STEEL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $113.00 million or 16.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The share price of UNITED STATES STEEL CORP has not done very well: it is down 21.26% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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