Jim Cramer Thinks These 10 Stocks Deserve Your Attention

7. United States Steel Corporation (NYSE:X)

Number of Hedge Fund Investors: 58

Jim Cramer noted that JPMorgan has upgraded United States Steel Corporation (NYSE:X) to a buy-equivalent rating, highlighting that the risk and reward for steel stocks are becoming more favorable after a period of weaker fundamentals. According to analysts, the recent sharp decline in United States Steel Corporation (NYSE:X)’s stock due to uncertainty about its potential takeover by Japan’s Nippon Steel has created a compelling buying opportunity.

“JPMorgan upgraded U.S. Steel to buy-equivalent ratings, arguing the risk/reward for steel stocks is improving after a period of weakening fundamentals. Analysts said that U.S. Steel’s steep pullback on uncertainty over its takeover by Japan’s Nippon Steel has created an attractive entry point.”

A positive outlook on United States Steel Corporation (NYSE:X) is supported by its strategic focus on efficiency and growth. United States Steel Corporation (NYSE:X) is significantly 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 is expected to increase EBITDA from $2.2 billion in 2023 to $2.8 billion by 2025.

Investments in downstream products like galvanizing and electrical steel are also likely to boost future revenue. Despite some challenges, United States Steel Corporation (NYSE:X) reported $4.1 billion in net sales and $183 million in net earnings for Q2 2024 and is expected to see free cash flow rise to $1.6 billion by 2025. These factors, along with ongoing capital investments, support a positive long-term outlook for United States Steel Corporation (NYSE:X)’s profitability and stock performance.