Iconic steel manufacturer U.S. Steel Group (NYSE: X) has been trending lower for over a year now and the stock has rallied in the past month and a half. Unfortunately the stock could be facing some resistance now as it is hitting the upper rail of a trend channel that has defined trading over the past six months.
You can see how the upper rail is formed by the highs in July and November. The lower rail isn’t as clear cut, but if the stock drops anywhere near the lower rail, it will take the price down below the $16 level.
The Tickeron AI Trend Prediction tool generated a bearish signal on the stock on February 5. That prediction showed a confidence level of 72% and previous predictions on U.S. Steel have been accurate 86% of the time. The signal calls for a decline of at least 4% over the coming month.
U.S. Steel’s fundamentals are all over the place at this time. Earnings growth has been flat over the last few years, but the most recent quarterly report showed a jump of 139%. The company has a good return on equity at 25.6%, but the profit margin is a paltry 2.1%.
Given the downward trend, the confusing fundamentals, and the bearish signal, it would be hard to bet on U.S. Steel going up at this time.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where X declined for three days, in of 299 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on X as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for X turned negative on April 18, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where X's RSI Indicator exited the oversold zone, of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where X advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
X may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.753) is normal, around the industry mean (1.230). P/E Ratio (10.388) is within average values for comparable stocks, (12.624). X's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (0.729). X has a moderately low Dividend Yield (0.005) as compared to the industry average of (0.047). P/S Ratio (0.523) is also within normal values, averaging (1.283).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. X’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacture of integrated steel products
Industry Steel