U.S. Steel (X) – Positioned for Upside Despite Market Volatility
U.S. Steel (NYSE: X) has faced its fair share of market turbulence, but for investors willing to handle the volatility, this stock presents an intriguing opportunity. According to JPMorgan analyst Bill Peterson, while the steel market is expected to be volatile in the short term, things are likely to stabilize by 2025 as interest rates ease and post-election economic clarity emerges.
U.S. Steel is also looking strong from a valuation standpoint. Even with a conservative price outlook, Peterson sees significant standalone value in the company, making it a solid buy for fundamental investors. The company’s free cash flow is expected to hit an inflection point by 2025, driven by reduced capital expenditures, which could also pave the way for share buybacks.
Though there are concerns about President Biden potentially blocking U.S. Steel’s pending sale to Japan’s Nippon Steel, any pullback in share price could present a buying opportunity for long-term investors. With a strong balance sheet and the potential for improved demand as the steel market recovers, U.S. Steel looks well-positioned for growth heading into next year.
For those seeking exposure to the steel sector, U.S. Steel offers both a value play and the potential for long-term growth.
