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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $186.7 million.
- X has traded 6.2 million shares today.
- X traded in a range 206% of the normal price range with a price range of $2.75.
- X traded below its daily resistance level (quality: 159 days, meaning that the stock is crossing a resistance level set by the last 159 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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. The company operates in three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE), and Tubular Products (Tubular). The stock currently has a dividend yield of 0.7%. X has a PE ratio of 41.6. Currently there are 6 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 8.2 million shares per day over the past 30 days. United States has a market cap of $4.2 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.97 and a short float of 26.1% with 5.27 days to cover. Shares are down 2.9% year-to-date as of the close of trading on Thursday.
rates United States Steel as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.
Highlights from the ratings report include:
- X's revenue growth has slightly outpaced the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 11.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 88.4% when compared to the same quarter one year prior, rising from -$1,791.00 million to -$207.00 million.
- 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. When compared to other companies in the Metals & Mining industry and the overall market, UNITED STATES STEEL CORP's return on equity has significantly 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 rather low; currently it is at 16.11%. 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, X's net profit margin of -4.51% significantly underperformed when compared to the industry average.
- Net operating cash flow has significantly decreased to -$106.00 million or 386.48% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full United States Steel Ratings Report.