10 Best Steel Stocks to Buy According to Billionaires

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1. United States Steel Corporation (NYSE:X)

Number of Billionaire Investors: 14

United States Steel Corporation (NYSE:X) manufactures and sells flat-rolled and tubular steel products in North America and Europe. The company runs four segments: North American Flat-Rolled, Mini Mill, U.S. Steel Europe (USSE), and Tubular Products.

United States Steel Corporation (NYSE:X) faced challenges in the market and recorded 2024 net earnings of $384 million, down from $895 million in 2023. This drop resulted from weaker steel prices and reduced demand. Despite this, adjusted EBITDA reached $1.366 billion, reflecting efficient operations amid industry challenges.

For Q4 ended December 31, 2024, United States Steel Corporation (NYSE:X) posted an $89 million net loss, worse than the $80 million loss in Q4 2023. Lower prices and lower demand impacted the results, especially in Europe. Higher volumes in Mini Mill and cost control in North American Flat-Rolled helped limit further losses.

Furthermore, strategic moves boosted key segments as Mini Mill saw its first shipments from Big River 2 in December, offsetting maintenance at Big River Steel. Additionally, North American Flat-Rolled achieved a 10% EBITDA margin through a smart commercial strategy and cost management. Although United States Steel Corporation (NYSE:X) struggled with weak pricing and demand, the Tubular sector improved due to higher shipments.

In the future, United States Steel Corporation (NYSE:X) expects Q1 2025 adjusted EBITDA to be between $100 million and $150 million. An increase in Big River 2 shipments should improve Mini Mill results. However, seasonal logistics issues in mining may affect the Flat-Rolled segment early in 2025. European operations could experience slight gains despite ongoing demand pressures. The company expects positive free cash flow in 2025 as Mini Mill operations grow, positioning it as a strong contender among the best steel stocks.

Overall, United States Steel Corporation (NYSE:X) ranks first on our list of the Best Steel Stocks to Buy According to Billionaires. While we acknowledge the potential of X, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than X but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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