5 Reasons To Add U.S. Steel (X) Stock To Your Portfolio
Zacks Investment Research | Apr 10, 2017 10:03PM ET
The steel industry is finally back on track after being in a rut for long. The industry’s rebound has been backed by favorable developments on steel trade cases in the recent past and President Donald Trump’s infrastructure spending promises.
Steel stocks got a boost following Trump’s election win in November on expectations of significant infrastructure spending in a Trump administration. The steel industry is expected to be one of the key beneficiaries of Trump's presidency. President Trump's call for $1 trillion of new infrastructure spending is likely to have a beneficial effect on the steel industry given the expected increase in steel consumption. Trump’s aggressive trade policies are also anticipated to provide more protection to the U.S. steel industry.
Affirmative rulings in a number of trade cases have also been a positive catalyst for the U.S. steel industry. Steel imports fell around 15% last year on the back of punitive trade actions that led to levy of tariffs on imports. Steel prices have also rebounded on the back of these trade actions.
One of the stocks in the steel space showing strong prospects is U.S. Steel (NYSE:X) . Based on its compelling growth prospects and healthy fundamentals we believe U.S. Steel has plenty of upside potential.
What Makes U.S. Steel a Solid Pick?
Solid Zacks Rank: U.S. Steel has a Zacks Rank #1 (Strong Buy) and a Zacks Investment Research
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