Goldman Adds U.S. Steel to its “Conviction Buy” List (X)

By Dividend.com,  May 13, 2010, 08:57:02 AM EDT

Steelmaker United States Steel Corporation ( X ) saw its shares added to Goldman Sachs' prestigious "Conviction Buy" List on Thursday, sending its shares higher.

The firm also set a $73 price target on the stock, which represents a 33% upside on its Wednesday closing price of $55.03.

Goldman said that steel production continues to grow, even approaching its mid-2008 peak, while steel inventories in the U.S. remain as historically low levels. The analyst also noted the stock's recent weakness provides a good entry point.

U.S. Steel shares rose $1.12, or +2%, in premarket trading Thursday.

The Bottom Line
We recently removed shares of U.S. Steel ( X ) from our recommended list back on Apr.19, when the stock was trading at $59.81. The company has a .36% dividend yield, based on last night's closing stock price of $55.03. The stock has technical support in the $50-$51 price area. If the shares can firm up, we see overhead resistance around the $60 price level. We would remain on the sidelines for now.

United States Steel Corporation ( X ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: X



Latest News Video

Obama's Renews Plan To Close Guantanamo Prison
Obama's Renews Plan To Close Guanta...
Thursday, May 23: Watch H-P, Gap, GameStop
Thursday, May 23: Watch H-P, Gap, G...
David Wessel: Markets Getting Unclear Fed Message
David Wessel: Markets Getting Uncle...
Stockholm Riots Continue For a Fifth Night
Stockholm Riots Continue For a Fift...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.21 0.10  0.75%
HPQ $ 24.86 3.63  17.10%
SIRI $ 3.545 0.01  0.28%
MU $ 11.39 0.47  4.30%
MSFT $ 34.15 0.46  1.33%
F $ 14.81 0.16  1.07%
QQQ $ 73.45 0.17  0.23%
GE $ 23.66 0.20  0.84%