Everything you need to know about US Steel Corporation

U.S. Steel Corporation’s stock has surged in the past few months, delivering more than 150% growth in the last year.

Mohit Oberoi, CFA - Author

Sep. 24 2014, Published 10:39 a.m. ET


Overview of U.S. Steel Corporation

U.S. Steel (X), is one of the biggest steel makers in the U.S., with production of 20.4 million tons in 2013. It is the 13th biggest steel company globally. The company’s stock has surged in the past few months, delivering more than 150% growth in the last year. A lot of this growth is due to the resilience in the steel industry, where most of the stocks have done well. It is also a result of a transformation strategy at U.S. Steel.

This series will present an overview of some of the company’s recent strategic actions, and analyze the outlook for its business. These actions are expected to benefit U.S. Steel in the long run. Stock markets have reacted positively to these announcements, and the company’s stock jumped by 10%.

The glorious past of U.S. Steel

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When founded in 1901, the authorized capital of U.S. Steel was a whopping $1.4 billion, and it was the largest business enterprise ever launched. It accounted for 67% of total steel produced in the U.S. in its very first year of full operation. It has been a symbol of America’s rise and decline in industrial production. The chart above shows the key timeline in the company’s history.

U.S. Steel’s competitors

Since U.S. Steel supplies its steel to all major steel consumers, it competes with other steel companies operating in the U.S. Some of the major steel companies listed in the U.S. are ArcelorMittal (MT), Nucor (NUE), and AK Steel Holdings (AKS). SPDR S&P Metals and Mining ETF (XME) seeks to invest in these companies. AK Steel is the largest holding for XME, forming more than 5% of its total assets.

In a recent release, U.S. Steel has expressed optimism for its third quarter results. It expects significant improvements in all its reportable segments.


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