Top Stock Picks for Summer 2021: United States Steel (X)

·1 min read

We don't buy the "sell in May and go away" song and dance. We are here for spotting opportunities that others don't see, so stay tuned as we highlight Bernie Schaeffer and his trading team's top stock picks to buy in May and hold through the summer months! To access the entirety of Schaeffer's Top Summer 2021 Stock Picks report, click here.

U.S. Steel (NYSE:X) has a climbed since Goldman Sachs initiated coverage of the security with a "neutral" rating on April 9, with the shares' ascending 40-day moving average guiding X higher. This trendline also happens to coincide with the stock's $6 billion market cap.

United States Steel (NYSE:X) Stock Pick for Summer 2021
United States Steel (NYSE:X) Stock Pick for Summer 2021

A shift in sentiment from the analyst community could keep the tailwinds blowing for the equity. Of the eight analysts in coverage, seven maintain a "hold" or worse rating. Plus, X's 12-month consensus price target of $20.42 is a 14.1% discount to the stock's current perch.

Meanwhile, the ranks of short sellers keep getting bigger, with short interest up 16.3% in the two most recent reporting periods. The 33.87 million shares sold short now account for nearly 20% of X's total available float, making the stock ripe for a short squeeze.

One parting thought on a potential macro tailwind: U.S. President Joe Biden's sweeping $2 trillion infrastructure bill has earned 59% approval nationwide, from Democrats and Republicans alike. With that bipartisan support, it seems the bill could make its way through Washington D.C. rather expediently. Steel stocks such as X could be the summer winners if such legislation – or a compromised version of Biden’s initial proposal – is passed.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting