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U.S. steel stocks have had a tough run under President Donald Trump, but Bank of America analyst Timna Tanners says things might not get much better for steel stocks if presumptive Democratic nominee Joe Biden wins the White House in November.Biden now has a 20-point lead over Trump, according to the online prediction market PredictIt.org. While steel investors may assume a Democratic victory in November would result in the rollback of Trump's Section 232 steel and aluminum tariffs, Tanners said tariffs have historically been a nonpartisan issue. Both sides of the political aisle voiced concerns about Trump's steel tariffs.While the tariffs seemingly haven't done much to improve steel prices and margins during the Trump presidency, Tanners said Monday that removal of the tariffs at this point would have a negative impact on prices during a critical period for the industry in which it is overbuilding capacity.Other Political FactorsOne potential partisan headwind for the steel industry could be the fate of Trump's border wall with Mexico. Most of the pipe for the proposed border was expected to be delivered by the end of 2020. Tanners said Democrats would likely halt construction of the wall, but whether or not they would tear down and scrap what has already been built could have a major impact on near-term steel prices.Two additional major political catalysts could have a significant impact on the US steel industry, according to Tanners. First, Biden's plan to raise corporate tax rates from 21% to 28% would hurt steel stocks is Democrats gain control in Washington. However, a clean sweep by Democrats could also improve the chances that an infrastructure spending bill will be passed, a potential positive tailwind for steel demand.How To Play ItFor now, Tanners said investors should be careful in the U.S. steel space."Ultimately, a potential Democrat win would add to our already cautious thesis on most U.S. steel names," Tanners wrote in a note.Bank of America has Underperform ratings on Nucor Corporation (NYSE: NUE), Steel Dynamics, Inc. (NASDAQ: STLD) and United States Steel Corporation (NYSE: X). Bank of America has a $34 target for Nucor, a $23 target for Steel Dynamics and a $3 target for U.S. Steel.Benzinga's TakeAt this point, the U.S. steel group is a highly speculative space given the tremendous political risk and uncertainty regarding the election and the potential outlook in 2020 and beyond. Add in the uncertainty created from the COVID-19 outbreak and the trade war with China, and there are simply too many unknowns for investors to have much confidence in steel stocks these days.Do you agree with this take? Email email@example.com with your thoughts.Related Links:US Steel Analyst 'Very Concerned' About Liquidity Following Guidance Update Analyst: Vulcan, Martin Marietta Could Be T Infrastructure Spending Winners Photo credit: Petty Officer 1st Class Chad J. McNeeley, USNLatest Ratings for X DateFirmActionFromTo Jun 2020GLJ ResearchUpgradesSellHold May 2020UBSMaintainsSell May 2020TD SecuritiesMaintainsHold View More Analyst Ratings for X View the Latest Analyst Ratings See more from Benzinga(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The resumption of operations across major steel-consuming sectors such as automotive and construction augurs well for the U.S. steel industry.
In this article we will take a look at whether hedge funds think United States Steel Corporation (NYSE:X) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get […]
* Benzinga has examined the prospects for many investor favorite stocks over the past week. * This week's bullish calls included the iPhone maker and an e-commerce giant. * An electric vehicle manufacturer and a steel colossus were among the bearish calls.The main U.S. indexes ended the week higher, led by the Nasdaq's 3.7% gain. It was a week in which the Federal Reserve began buying corporate bonds for the first time; major corporations responded to social unrest; the Supreme Court issued decisions; and coronavirus cases were rising rapidly in parts of the U.S. While tensions increased on the Korean peninsula, things might be looking up between China and the U.S.Benzinga continues to examine the prospects for many of the stocks most popular with investors. The following are some of this past week's most bullish and bearish posts that are worth another look.Bulls: A case for significant upside for Apple Inc. (NASDAQ: AAPL) shares can be made, due in part to the coming 5G transition, according to an expert featured in Jayson Derrick's "Pro: Apple Shares Have Room To Run To 0.""Needham Says Amazon's Media Business Worth 0B Based On 'Hidden Asset Value'" by Neer Varshney suggests that Amazon.com, Inc. (NASDAQ: AMZN) media products are worth about the same as its cloud business.Priya Nigam's "5G Could Help Drive Cisco Systems Recovery, BofA Says In Upgrade" reveals why Cisco Systems, Inc. (NASDAQ: CSCO) numbers could bottom in the fourth quarter.In "Low Interest Rates, Federal Stimulus Lead BofA To Raise Homebuilder Price Targets," Elizabeth Balboa shares why homebuilders such as D. R. Horton Inc (NYSE: DHI) benefit from economic stimulus efforts.For additional bullish calls, also have a look at "Netflix 'Impervious' To Coronavirus, Recession: Imperial Capital" and "Micron Option Trader Bets .5M On 5% Upside Ahead Of Earnings."Bears: Tesla Inc (NASDAQ: TSLA) could be in for a sales shortfall in the second quarter. So says "Tesla Analyst Says Plunging Registrations In Key California Market Pushing Street Delivery Estimates Down" by Shanthi Rexaline.In Wayne Duggan 's "Wall Street Cautious On Oracle: 'Investors Likely Have To See The Growth Before Believing It'," see how recent Oracle Corporation (NYSE: ORCL) results reveal challenges it faces.Elizabeth Balboa's "Goldman Sachs Downgrades Slack To Sell On Competition Risk" looks at why Slack Technologies Inc (NYSE: WORK) may not be able to hold its market share."US Steel Analyst 'Very Concerned' About Liquidity Following Guidance Update" by Wayne Duggan discusses how mid-quarter guidance reminded investors of challenges faced by United States Steel Corporation (NYSE: X).Be sure to check out "Disney Analyst Says The Mouse Faces Park, Production Problems: 'A Ferrari Without Gas'" and "H&R Block's Q4 Print Keeps Morgan Stanley Sidelined: 'A Lost Tax Season'" for additional bearish calls.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Chevron, Goldman Sachs, Progressive And More * Benzinga's Bulls And Bears Of The Week: Amazon, Netflix, Starbucks And More * Barron's Picks And Pans: Cisco, Gilead, Netflix, Wayfair And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Moody's Investors Service commented that United States Steel Corporation's (U. S. Steel - Caa1 Corporate Family Rating, negative outlook) issuance of common stock in an underwritten public offering raising gross proceeds of $429 million, before any over allotment exercise, will further strengthen the company's liquidity profile and balance sheet to meet adverse operating conditions in 2020 and negative cash flow generation. Headquartered in Pittsburgh, Pennsylvania, U. S. Steel is the second largest flat-rolled producer in the US in terms of production capacity. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
US Steel CEO David Burritt said the wider-than-expected second quarter loss 'could mark the trough for the year' for the struggling industrial group.
(Bloomberg) -- U.S. Steel Corp. is doing everything it can to weather the economic downturn caused by the coronavirus pandemic, including a share offering announced late Wednesday.The company offered 50 million shares -- almost a third of the current number outstanding -- for proceeds of $429 million. The shares dropped 9.9% to $8.46 as of 10:39 a.m. in New York on Thursday.The Pittsburgh-based steelmaker faces a historic decline in demand, announcing earlier Wednesday that it expects deeper losses in the second quarter than analysts had estimated. At the same time, U.S. Steel is working toward buying the remaining 50.1% of Big River Steel, after previously paying $700 million for almost half of it. The company said its investment in the electric arc furnace remains the “number one strategic priority.”“They have strategic objective of taking Big River down and want to make sure with 150% accuracy that they can get through this time period,” Phil Gibbs, an analyst at Keybanc Capital Markets, said in a telephone interview. “They weren’t bashful about what they needed in October to go after Big River, they don’t have any money and they’re going to have to go out and find ways to get it.”Before the pandemic, U.S. Steel already faced mounting skepticism about its ability to generate enough cash to afford its new investment while also paying for capital improvements on its aging assets.In the deal announced Wednesday, the company also granted the underwriter, Morgan Stanley, an option to buy up to 7.5 million in additional shares.(Updates share price in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Housing starts report slower growth than expected. U.S. Steel stock plummets 10% amid second-quarter losses. But DraftKings could get a royal reception with a sale of new stock.
Japanese shares closed lower on Thursday as increasing cases of the novel coronavirus across the United States and China raised concerns about a swift recovery in the global economy. The broader Topix fell by 0.25% to 1,583.09, with 24 of the 33 sector sub-indexes on the Tokyo exchange posting declines.
United States Steel Corporation (NYSE: X) (the "company" or "U. S. Steel") today announced the pricing of its previously announced underwritten public offering of 50,000,000 shares of common stock, for gross proceeds of approximately $429 million. The company has granted the underwriter a 30-day option to purchase up to 7,500,000 additional shares of common stock from the company. The offering is expected to close on or about June 22, 2020, subject to customary closing conditions.
U.S. Steel Corp. late Wednesday filed to offer 57.5 million shares, including underwriter options, and said it will use the proceeds to "strengthen its balance sheet, increase liquidity and for general corporate purposes." Morgan Stanley is the offering's underwriter. Shares of the steel producer fell 2.3% in the extended session Wednesday after ending the regular trading day down 10%. Earlier Wednesday, U.S. Steel estimated steeper-than-expected losses for its second quarter, saying that a "significant portion" of its steel-making operations have been idled during the quarter as a result of the COVID-19 pandemic. U.S. Steel is expected to report second-quarter results in late July.
United States Steel Corporation (NYSE: X) (the "company" or "U. S. Steel") today announced that it has commenced an underwritten public offering of 50,000,000 shares of common stock. U. S. Steel intends to grant the underwriter a 30-day option to purchase up to 7,500,000 additional shares of common stock from the company.
United States Steel Corporation (NYSE: X) shares dropped 9% on Wednesday after the company provided mid-quarter guidance that reminded investors of its liquidity challenges.On Wednesday, Bank of America analyst Timna Tanners cut her 2020 U.S. Steel revenue and earnings forecast and said she's "very concerned" about the company's liquidity situation.The Numbers: The updated company guidance calls for a $315 million EBITDA loss in the quarter, excluding roughly $100 million in restructuring charges. The guidance is significantly worse than the $85 million EBITDA loss analysts were anticipating. Despite the worst-than-expected earnings guidance, U.S. Steel maintained its 2020 liquidity requirement estimate at $700 million.Tanners cut her 2020 revenue estimate from $8.773 billion to $8.714 billion and raised her 2021 estimate from $10.588 billion to $10.600 billion. She also cut her 2020/2021 EPS loss estimates from -$5.45/-$4.50 to -$6.80/-$4.60.Running Out Of Cash? Tanners is projecting a 2020 free cash flow of negative $1.1 billion and is forecasting $2.8 billion in cash burn through 2022."On our below consensus sub $500/st HRC forecast for 2021E/22E we see risk U.S. Steel runs through its cash in 2022E," Tanners wrote in a note.Bank of America has an Underperform rating and $3 price target for US Steel shares, suggesting nearly 70% downside from current levels.Benzinga's Take: Companies with weak balance sheets are most at risk during this period of economic uncertainty. On Tuesday, Tanners named Commercial Metals Company (NYSE: CMC) as the best-positioned steel stock, especially if a U.S. infrastructure spending bill is ultimately passed.Do you agree with this take? Email firstname.lastname@example.org with your thoughts.Related Links:Analyst: Vulcan, Martin Marietta Could Be T Infrastructure Spending Winners BofA Cuts US Steel's Price Target To Latest Ratings for X DateFirmActionFromTo Jun 2020GLJ ResearchUpgradesSellHold May 2020UBSMaintainsSell May 2020TD SecuritiesMaintainsHold View More Analyst Ratings for X View the Latest Analyst RatingsSee more from Benzinga * Analyst: Vulcan, Martin Marietta Could Be T Infrastructure Spending Winners(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The U.S. death toll from the coronavirus illness COVID-19 climbed above 117,000 on Wednesday, amid reports that nine states are recording either single day record numbers of cases or their highest seven-day new case averages, indicating they are not managing to contain the spread.
U.S. Steel stock is in the red after the company provided a disappointing second-quarter outlook. There were a couple of positive steel data points for investors to mull over, however.
Shares of U.S. Steel Corp. dropped 3.1% in premarket trading Wednesday, after the steel producer's estimate for second-quarter losses was much wider than expectations. The company expects an adjusted loss per share of $3.06, compared with the FactSet per-share loss consensus of $1.73, as a "significant portion" of steelmaking operations have been idled during the quarter as a result of the COVID-19 pandemic. The company reiterated its view that it believes the second-quarter will mark the bottom for the years, with demand starting to show improvement in June. Results for the company's flat-rolled business are expected to be "significantly lower" than the first quarter as a result of the pandemic, but demand has begun improving. The tubular business remains "challenged," however, with demand for welded and seamless pipe declining significantly, as rig counts continue to decline and oil prices remain low. The stock has rallied 87.6% over the past three months through Tuesday, while the Dow Jones Industrial Average has climbed 23.8%.
United States Steel Corporation (NYSE:X) today provided second quarter 2020 guidance and an update on its latest liquidity requirements for the remainder of the year. Second quarter 2020 adjusted EBITDA is expected to be approximately ($315) million, which excludes approximately $100 million of estimated restructuring and other charges. The company expects second quarter 2020 adjusted diluted loss per share to be approximately ($3.06).
As of 2:45 p.m. EDT today, U.S. Steel stock was still enjoying a very tidy 10.2% profit, Mexican concrete producer Cemex wasn't far behind with a 7.4% gain, and U.S. Concrete, a small-cap stock that most days isn't even a blip on most investors' radar, remained up 21.2%. President Donald Trump is directly responsible for all these stocks' gains, with reports today that he is once again pushing Congress to enact a $1 trillion infrastructure bill. From time to time over the last four years, President Trump has revived the idea of getting an infrastructure bill passed, each time unsuccessfully.
Metals-producing companies saw their stocks rebound on Friday from Thursday's sharp sell-off, with shares of steelmakers ArcelorMittal (NYSE: MT) rebounding to post an 8.4% gain, U.S. Steel (NYSE: X) rising 10.8%, and aluminum giant Alcoa (NYSE: AA) closing up 10.7%. Logically, if those shares were going to move higher, they should have done so in response to the good news on metals prices.
Cheryl Wellman was able to bring back most of her furloughed workers last month with the help of a special government loan. Wellman, president of Integrity Metals LLC in Romeoville, Illinois, which makes metal parts for big companies including General Electric Co. and Honeywell International Inc. , was hoping for a surge of orders as the pandemic shutdowns lifted and companies moved to restock shelves. Integrity was able to rehire with the aid of just over $200,000 from the Paycheck Protection Program, or PPP, which offers forgivable government-backed loans.