Trade-Ideas LLC identified

United States Steel

(

X

) as a "perilous reversal" (up big yesterday but down big today) 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 $328.3 million.
  • X has traded 493,623 shares today.
  • X is down 3% today.
  • X was up 6.3% yesterday.

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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 1.3%. Currently there are 2 analysts that rate United States Steel a buy, 5 analysts rate it a sell, and 6 rate it a hold.

The average volume for United States Steel has been 14.7 million shares per day over the past 30 days. United States has a market cap of $2.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.56 and a short float of 42.2% with 2.07 days to cover. Shares are up 97.7% 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 512.0% when compared to the same quarter one year ago, falling from $275.00 million to -$1,133.00 million.
  • The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, X maintains a poor quick ratio of 0.85, 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 significantly decreased to $51.00 million or 79.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.66%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 523.49% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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