Dallas, Texas 11/12/2013 (Financialstrend) – Long term investors in the stock of the S&P 500 index tracked Iron and Steel producer United States Steel Corp. (NYSE:X) would be kicked about the fact that their holding in the company in the past 30 days has seen a 24% appreciation. This compares really well when its trailing 12 month period appreciation hovers around the 30% mark. In addition last week, the stock went ex dividend. It had announced that it would be paying quarterly dividend of $0.05 per share to all its share holders on record as of November 5. The payout will happen on December 10. The trailing 12 month dividend yield will translate to a 0.74% with an aggregate $0.2 dividend payout in the same period.
The investors would be further gladdened to see rating agencies like Goldman Sachs being bullish about the company’s prospects by upgrading the stock to a Buy from its previous neutral call. The rating agency’s analysts have cited the cyclical nature of the steel business to advise investors to stay invested in firms which have strong fundamentals to show growth in earnings when the sector business sentiments picks up eventually. They have go on to highlight the improving correlation between the supply and demand for steel and have opined that the near term weakness in steel price has already been factored into the price of the stock of producer United States Steel Corp. (NYSE:X). It has gone ahead and upped its price target further.
Readers should note that the stock of this $3.94 billion market capped steel maker is trading at $27.20 per share as of close of business on November 11. The stock is trading very close to its 52 week high bench mark of $27.63 and is trading at a premium on the price target of $22 set by analysts.
