United States Steel (X) Leads The Pack In Pre-Market Activity

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.

Trade-Ideas LLC identified United States Steel ( X) as a pre-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 $221.9 million.
  • X traded 11,079 shares today in the pre-market hours as of 8:22 AM.
  • X is up 2.2% 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 0.8%. Currently there are 5 analysts that rate United States Steel a buy, 4 analysts rate it a sell, and 5 rate it a hold.

The average volume for United States Steel has been 8.1 million shares per day over the past 30 days. United States has a market cap of $3.7 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.98 and a short float of 30% with 4.70 days to cover. Shares are down 4.3% year-to-date as of the close of trading on Tuesday.

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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 largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • X, with its decline in revenue, slightly underperformed the industry average of 18.2%. Since the same quarter one year prior, revenues fell by 26.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • X's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.88 is weak.
  • 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. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, UNITED STATES STEEL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for UNITED STATES STEEL CORP is currently extremely low, coming in at 6.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.29% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $136.00 million or 76.14% 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.

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