3Q16 earnings

Wall Street analysts update their target prices after a company’s quarterly earnings release. After U.S. Steel Corporation’s (X) 3Q16 earnings release, several leading brokerages slashed the company’s target price.

3Q16 Earnings: Are Analysts Losing Patience with U.S. Steel?

Target price cut

For instance, Credit Suisse, which was among the bullish brokerages on U.S. Steel, cut the company’s target price from $29 to $24 after the company’s 3Q16 earnings release. JPMorgan Chase, which has also been bullish on U.S. Steel for quite some time now, slashed the company’s price target to $29 from $31.

Notably, U.S. Steel saw a flurry of downgrade activity even before its 3Q16 earnings were released. On October 18, JPMorgan Chase cut its one-year price target from $37 to $31. That day, Clarksons Platou Securities cut U.S. Steel’s price target from $18 to $15. Prior to that, Barclays cut U.S. Steel’s price target from $22 to $18 on October 17, while Macquarie cut U.S. Steel’s price target from $20 to $13 on October 13.

Analysts’ ratings

Of the 18 analysts surveyed by Bloomberg, five analysts rate U.S. Steel as a “buy” and four rate it as a “sell.” The remaining analysts rate the stock as a “hold.” U.S. Steel has a one-year price target of $20.03, an 11% upside based on its closing price on November 2. AK Steel (AKS) and ArcelorMittal (MT) are trading 16% and 20% below their consensus price targets, respectively, while Nucor (NUE) is trading 8.6% below its consensus price target.

Meanwhile, both bulls and bears (SDS) sense an opportunity in U.S. Steel. To find out more about the company’s bullish and bearish drivers, read Bulls or Bears: Who Makes the Best Case for U.S. Steel? You can also visit our Steel page for more updates on the industry.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.