X - AK Steel and Schnitzer Steel Industries Downgraded
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Steel investors wound down last week not with a bang, but a whimper, as U.S. Steel (NYSE: X) stock suffered a "double-downgrade" at the hands of investment bank Macquarie. Frightened by U.S. Steel's Q3 earnings guidance (tl;dr: there won't be any earnings, but losses instead), the analyst cut its rating to underperform and predicted that steel prices will "stay weak" for the remainder of this year.
And Macquarie isn't the only one worried -- nor is U.S. Steel the only steel stock getting downgraded.