10 Most Promising Mid-Cap Stocks According to Hedge Funds

3. United States Steel Corporation (NYSE:X)

Number of Hedge Fund Holders: 58

Market Capitalization as of October 10, 2024: $8.02 Billion

United States Steel Corporation (NYSE:X) is a steel manufacturer based in Pittsburgh, Pennsylvania. The company was founded in 1901 and now sells steel products such as flat-rolled and tubular products for customers in various industries including automotive, construction, consumer, electrical, and industrial equipment.

In the second quarter of 2024, the company reported $183 million in net earnings and $211 million in adjusted net earnings. During the same quarter, the company logged $4.12 billion in revenue. While the revenue declined by nearly 18% due to rising steel prices, United States Steel Corporation (NYSE:X) remained resilient and accelerated growth on the efficiency and strategic investments side.

The company is making headlines for its acquisition by Nippon Steel Corporation (NSC). According to its Q2 earnings report, the company is progressing towards closing the transition before the end of 2024. The transaction, if executed, will position the newly joint company as a leader in the industry. Nippon Steel Corporation (NSC) agreed to invest another $1.4 billion in capital expenditures into facilities covered by the basic labor agreement. However, the transaction is subject to immense legal scrutiny and may either push back the closing of the deal or cancel it altogether.

With or without NSC, United States Steel Corporation (NYSE:X) adds a lot of value to the steel industry in terms of its fundamentals. The company has several strategic initiatives in the pipeline that are expected to close before the end of 2024, making it a promising stock according to hedge funds.