| US STEEL TO GROW (X)
By: Thomas Klimek
Prospective look on United States Steel Corp. (X) in 3 months is a value of $35.00
This stock has taken a beating over the last year or so falling from nearly $200 (June 2008) to a low of $16 in March 2009. The stock is one of the original and older stocks on the NYSE and is an American Company. With business done through out the U.S.A and Canada with expansions in Europe and the world the company is a growing prospect with a market cap of $2.5 billion it is one of the strongest in the industry.
A technical perspective of the company shows a large rate of over selling and indications of movement upwards in this volatile market. The Fundamental analysis is even more promising providing further proof that this corporation is strong and growing with numbers inviting to the eye. As of March 2009, the company posts a 17% gross margin which needs to be improved upon; however, their management efficiency is effective placing a return on equity of 40.6% and return on assets of 14% proving that the company is using assets to make money. Another ideal thought of the company is their 40 % dividend growth over 5 years. This year they are yielding a little over 5% their value, which is at ($22.62 April 1, 2009). United States Steel Corp (X) is growing at 20% over 5 years.
An interesting thought forward is when industry starts to grow and infrastructure is needed when this recession ends, who is going to produce the raw materials such as steel? Well, United States Steel (X) is going to be one of the biggest in that industry, especially with the U.S government pushing infrastructure growth to create jobs. My final opinion is that the company United States Steel Corp. (X) is poised for a bull rally with decent to strong fundamentals and good management that will make shareholders happy. A good Buy this month and the year to come.