Trade-Ideas: United States Steel (X) Is Today's Post-Market Leader Stock

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 United States Steel ( X) as a post-market leader 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 $280.3 million.
  • X is up 4.1% today from today'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. 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 0.5%. Currently there are 7 analysts that rate United States Steel a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for United States Steel has been 7.6 million shares per day over the past 30 days. United States has a market cap of $5.8 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.55 and a short float of 26.7% with 5.45 days to cover. Shares are up 34.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United States Steel as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and generally higher debt management risk.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 77.77% and other important driving factors, this stock has surged by 97.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Net operating cash flow has significantly increased by 418.54% to $783.00 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 -10.41%.
  • UNITED STATES STEEL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED STATES STEEL CORP reported poor results of -$11.68 versus -$0.97 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus -$11.68).
  • 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.
  • The gross profit margin for UNITED STATES STEEL CORP is currently extremely low, coming in at 6.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.40% is significantly below that of the industry average.

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