A New Chapter For United States Steel: Growth, Risks And Valuation

Gamlet Muradian
189 Followers
(20min)

Summary

  • U.S. Steel's financial performance has been volatile, with 2024 seeing significant declines in revenue and profit, but a strategic shift towards mini-mills promises future stability.
  • The company's vertical integration and diverse product range offer advantages, but high fixed costs and competition from more flexible EAF producers pose challenges.
  • Despite recent investments and a potential acquisition by Nippon Steel, U.S. Steel's shares are fairly valued at $42.26, leading to a "Hold" rating.
  • Key growth drivers include the "Best for All" strategy, BR2 mini-mill expansion, and strong domestic incentives like the IIJA and Buy America policy.

Steelworker cleaning pouring end of flask during steel pour in steelworks

Monty Rakusen

Introduction

The United States Steel Corporation (NYSE:X) is a true legend of the American industry with a long history that began in 1901. Today, U.S. Steel produces almost the entire range of steel products: hot-rolled and cold-rolled products, galvanized, sheets, pipes. Recent years have

This article was written by

189 Followers
My professional background spans multiple continents and includes experience in private banking, corporate finance, and strategic advisory. For several years, I developed and led a private banking department in Dubai, where I crafted tailored investment solutions to meet the unique needs of affluent clients across the Middle East and beyond. Additionally, I have been involved in managing cross-border M&A transactions in Indonesia, building a track record of successful deal origination and execution in emerging markets. On Seeking Alpha, I plan to share timely insights into a range of industries and asset classes. Whether examining high-growth technology equities, undervalued blue-chip stocks, or niche market opportunities, my goal is to provide well-researched commentary grounded in real-world experience. By contributing in-depth research and thoughtful perspectives, I hope to help readers navigate today’s complex global markets while staying true to a risk-aware, fundamentally driven investment approach.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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