10 Best Industrial Stocks to Buy According to Hedge Funds

06. United States Steel Corporation (NYSE:X)

Number of Hedge Funds Holders: 70

United States Steel Corporation (NYSE:X) manufactures and markets flat-rolled and tubular steel products, focusing primarily on markets in North America and Europe. Its operations are divided into segments: North American Flat-Rolled (Flat-Rolled), Mini Mill, U. S. Steel Europe (USSE), and Tubular Products (Tubular). On June 17, United States Steel Corporation (NYSE:X) revised its Q2 2024 guidance, expecting adjusted earnings per share of $0.76 to $0.80 and adjusted EBITDA of around $425 million, slightly lower than previous forecasts. CEO David B. Burritt cited stable domestic flat-rolled steel demand and variable spot steel prices for the adjusted EBITDA revision. The company highlighted restarting a blast furnace in Europe to meet increased customer demand and announced progress on new facilities aimed at meeting rising demand for sustainable steel. In another development, regulatory approvals for its transaction with Nippon Steel Corporation are nearly complete, expected to bring advanced technologies to enhance U.S. steel capabilities. On May 20, Jefferies began covering United States Steel Corporation (NYSE:X) stock, issuing a Buy rating along with a price target of $45.00. According to the firm’s analysis, United States Steel Corporation (NYSE:X) valuation is distinctively favorable compared to its peers, particularly highlighting that the company’s stock price is considerably lower than the accepted offer from Nippon. Jefferies believes this presents substantial upside potential for the stock.

During Q1, 2024 the count of hedge funds holding positions in United States Steel Corporation (NYSE:X) rose to 70 from 63 in the prior quarter, as reported by Insider Monkey’s database encompassing 920 hedge funds. These holdings collectively amount to around $2.38 billion. Matthew Halbower’s Pentwater Capital Management emerged as the leading shareholder among these hedge funds during this timeframe.