U.S. Steel downgraded at Argus, which says shares look overbought

|By:, SA News Editor

U.S. Steel (X -3.1%) is sharply lower after Argus downgrades shares to Hold from Buy, saying the stock is now overbought following the 60% surge since the election.

While unexpected outages at several manufacturing plants likely will weigh on Q4 results, Argus expects U.S. Steel to benefit from the Trump administration’s plans to boost infrastructure spending as well as from further actions to limit the dumping of imported steel, which should provide greater pricing power over time.

However, the firm thinks U.S. Steel and its peers still face significant uncertainty in the near term, and does not expect increased infrastructure spending to boost earnings until at least mid-2017.

Among peers: CLF -5.9%, MT -1%, WOR -3.3%, AKS -0.7%.