Attractive United States Steel Corp. forms a head and shoulder pattern

By:
on May 28, 2022
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  • United States Steel Corporation is trading at a PE of only 1.41
  • The price is in a head-shoulder pattern signalling a rally
  • Buy now for the opportunity to double value

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United States Steel Corporation (NYSE:X) is a solid low-priced value stock that all investors should focus on right now. The counter is trading at $24.63. At the price, the stock is dirt cheap.

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US Steel Corporation has an EPS of 18.51. That puts the PE at only 1.41. It will be very difficult to find any other stock trading at that value. The EPS is projected to grow by 7.42%.

Return ratios capture the fundamental strengths in a better way. The return on assets is 29%. The return on invested capital is 41%, while the return on equity is 69%. Buying US Steel Corporation is therefore recommended as it offers great value.

There is another important consideration when buying this stock. The company has a beta of 2.0, meaning higher risk than the market. However, this risk has not yet been reflected in the current declining market losses. Instead, market movements just created discounts for the keen investor.

United States Steel Corporation is dirt cheap at $24.63

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Source – TradingView

United States Steel Corporation has formed a head and shoulder pattern with support at $23.79. The potential resistance is at $38.53. This week’s price is up 3.53% and the RSI has taken an upward turn. The analysis considers that the stock is gathering momentum towards the resistance level. At $24.63, therefore, US Steel Corporation is a strong buy.

Summary

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United States Steel Corporation is a strong buy. Fundamental and technical strengths support the recommendation. The stock is highly discounted.

Steel USA North America Stock Market