X - United States Steel's Biden Factor: How It Affects A 44% Merger Opportunity
2024-03-17 21:41:08 ET
Summary
- United States Steel Corporation is a cyclical steel stock that has returned 14% since November, fueled by last year's takeover offer.
- However, the acquisition deal between X and Nippon Steel is unlikely to be approved, with Biden getting involved in the matter.
- Regardless of that, the stock offers value and will likely get new takeover offers.
Introduction
It's time to talk about the United States Steel Corporation ( X ) , one of the cyclical steel stocks I have had on my radar for many years.
My most recent article on the stock was written on November 2, when I went with the title "U.S: Steel Is A Buy In Light Of Megatrends, M&A, And Strategic Investments."
Since then, shares have returned 14%.
In this article, we'll discuss the company's risk/reward in light of very important developments that allow me to focus on two important aspects of my investment framework:
- Macroeconomics : United States Steel is a cyclical steel stock.
- Politics : Biden is getting involved, making it increasingly unlikely that the Pittsburgh-based corporation will be acquired by Japanese Nippon Steel ( NPSCY ).