US Steel: A Recession, But Nobody Cares

Dec. 01, 2022 5:40 PM ETUnited States Steel Corporation (X)16 Comments
Leo Nelissen profile picture
Leo Nelissen
20.84K Followers

Summary

  • In this article, we discuss significant manufacturing headwinds as the US manufacturing sector enters another period of contraction.
  • Unlike in prior cycles, United States Steel is not crashing. The company benefits from strong business improvements, persistently high steel prices, and overseas energy problems.
  • While X is already attractively valued, I am looking for a move lower to $20 for a better risk/reward entry.
Recession Warning Green Road Sign Over Dramatic Clouds and Sky.

Feverpitched

Introduction

It's happening. The manufacturing sector in the United States is contracting again. The economic growth slowing trend is accelerating. The yield curve is extremely inverted, leading manufacturing surveys are in contraction territory, and the Fed isn't done hiking. It's truly a toxic environment for cyclical

This article was written by

Leo Nelissen profile picture
20.84K Followers
I'm a Buy-Side Macro Expert/Financial Markets Analyst. On Seeking Alpha, I discuss a wide range of topics including long-term dividend (growth) investments, mid-term trading opportunities, commodities, rates, and related. A big part of my philosophy is to incorporate as much macro as possible in my articles as it helps investors to make their own decisions and to be on top of all major developments. My DMs are always open. Also, I'm on Twitter (@Growth_Value_) in case you want to say hi! Long-Term Dividend HoldingsPSA, DUK, HD, PEP, RTX, UNP, VLO, DE, ABBV, CAT, HBAN, NSC, LHX, XOM, CVX, CP, LMT, NOC, CME, DHR, EXR

Disclosure: I/we have a beneficial long position in the shares of CLF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

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