7 Best Small Company Stocks To Invest In

4. United States Steel Corporation (NYSE:X)

Market Capitalization as of September 27: $8.03 billion

Number of Hedge Fund Holders: 58

United States Steel Corporation (NYSE:X) produces and sells steel products, including flat-rolled and tubular products for customers in industries across automotive, construction, consumer, electrical, industrial equipment, distribution, and energy. It is committed to providing high-quality steel products and solutions, while also focusing on environmental sustainability and corporate social responsibility.

The company is attracting attention due to the recent proposed acquisition by Nippon Steel for $15 billion. the deal is expected to face challenges and opposition in the US, and could potentially end up in cancellation.

As of the second quarter of 2024, the company made $4.12 billion in revenue, recording a year-over-year decline of 17.77%, primarily due to lower steel prices and reduced demand. Some of these challenges were offset by the strategic focus on efficiency and growth.

The company is expanding its Electric Arc Furnace (EAF) capabilities, with the Big River 2 (BR2) mini-mill set to nearly double its production capacity. This shift to more efficient and eco-friendly steelmaking at United States Steel Corporation (NYSE:X) is expected to increase EBITDA from $2.2 billion in 2023 to $2.8 billion by 2025. Investments in downstream products such as galvanizing and electrical steel will also likely boost future revenue.

The overall observation was that the Flat-Rolled Products revenue declined due to lower shipment volumes and pricing pressures. Tubular Products revenue remained stable, supported by ongoing demand from the energy sector.

Despite volatility and challenges, United States Steel Corporation (NYSE:X) is well-positioned for growth. The company’s strong fundamentals, strategic investments, and favorable market conditions make it a promising investment opportunity.