Stock Groups

3 Stocks to Avoid as United States Steel Corp. Warns of a Slowdown -Breaking

© Reuters. Three Stocks You Should Avoid As United States Steel Corp. The Warning Signs of Slowdown

We think that it would be prudent to steer clear of fundamentally weak stocks of steel because shares of United States Steel (NYSE) dropped in value recently, after the company had warned about a slowdown. Nucor (NUE), POSCO Now, Tenaris (TS), (NYSE:) Continue reading. According to the World Steel Association (NYSE:), and Tenaris (TS) now, world crude steel production declined 10.6% in October from 145.7 million tonnes to 145.7million tonnes. The steel industry has been experiencing stagnant prices due to a sudden drop in demand. Furthermore, the shares of United States Steel Corporation (X) declined on Friday after the company issued fourth-quarter EBITDA guidance that failed to meet Wall Street’s expectations.

In addition, the debt crisis involving a major Chinese property developer has hit the performance of the world’s second-largest economy’s steel sector, which is expected to affect the global scene given China’s dominance. The steel sector is volatile despite X already warning against a possible downturn.

We believe it would be prudent to steer clear of fundamentally weak stocks like Nucor Corporation (NYSE :NUE), POSCO(PKX) and Tenaris S.A.

Continue reading on StockNews

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts, data buy/sell signals, as well as quotes. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.