U.S. Steel Corporation
Steel stocks are having a nice run this month. Based on December 20, 2017, closing prices, AK Steel (AKS) and U.S. Steel Corporation (X) have risen 15.6% and 18.8%, respectively, in December. Nucor (NUE) and ArcelorMittal (MT) have risen 11% and 6.3%, respectively. After the upward price action this month, most US-based steelmakers, with the notable exception of AK Steel, are trading with year-to-date gains. In this part of the series, we’ll see why U.S. Steel is having a strong December.
US steel prices have shown strength in December. US steel producers have been pushing for price hikes over the last couple of months to stop falling steel prices. Steel market sentiments have improved as markets await the findings of the Section 232 imports probe expected in January 2018.
Analysts have also taken note of the US steel industry’s improved fundamentals, and we’ve seen some upgrades recently. Among the most notable upgrades was Axiom Capital’s earlier this month. Axiom, which has had strong bearish views on Cleveland-Cliffs (CLF) and U.S. Steel Corporation for the last few years, raised U.S. Steel Corporation stock from a “sell” to a “hold.” The firm also raised the company’s target price to $37. More recently, on December 20, 2017, Longbow Research gave a bullish commentary on the outlook for the US steel industry.
Christmas seems to have arrived early for U.S. Steel Corporation. Let’s look at the company’s outlook as we enter 2018. In the rest of this series, we’ll look at some of the factors that could drive U.S. Steel Corporation stock in 2018.
Let’s start by analyzing why January could be a crucial month for US steel investors (XME).