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Shares of United States Steel Corporation (NYSE: X) have declined 71.5 percent over the past year, almost touching their 52-week low on Wednesday at $6.67.
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Argus’ David Coleman has downgraded the rating on the company to Hold.
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The downgrade is based on the weak outlook for 2016, with Coleman expecting the company to continue to face challenges through the year.
Analyst David Coleman believes that the shares “could fall toward $4 if commodity prices continue to trend lower over the next few months.”
United States Steel reported adjusted net loss of $33 million or $0.23 per share, meaningfully below the adjusted net profit reported for the year-ago quarter.
The company’s shares have been range bound over the past year between $6 and $27 and are currently trading near the bottom of this range.
“From a technical standpoint, the shares are in a bearish pattern of lower highs and lower lows that dates to September 2014, and that has tracked the free fall in commodity prices during this period,” Coleman noted.
Going forward, the stock is expected to follow the commodity price trends, which are yet to stabilize. If commodity prices trend lower, the share price could decline towards $4 but if commodity prices were to stabilize, the stock could move back toward the $8-$10 range.
Latest Ratings for X
Date | Firm | Action | From | To |
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Jan 2016 | Argus Research | Downgrades | Buy | Hold | Jan 2016 | BMO Capital | Maintains | | Market Perform | Jan 2016 | Jefferies | Maintains | | Hold |
View More Analyst Ratings for X
View the Latest Analyst Ratings
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 6.4 billions as of today (€ 5.7 billions). Its stock quote reached its lowest recent point on March 28, 2003 at US$ 10.01, and its highest recent level on November 30, 2007 at US$ 98.85. United States Steel has 176 184 431 shares outstanding. |