Goldman Adds U.S. Steel to its “Conviction Buy” List (X)

Steelmaker United States Steel Corporation ( X ) saw its shares added to Goldman Sachs’ prestigious “Conviction Buy” List on Thursday, sending its shares higher. The firm also set a $73 price target on the stock, which represents a 33% upside on its Wednesday closing price of $55.03. Goldman said that steel production continues to grow, even approaching its mid-2008 peak, while steel inventories in the U.S. remain as historically low levels. The analyst also noted the stock’s recent weakness provides a good entry point. U.S. Steel shares rose $1.12, or +2%, in premarket trading Thursday. The Bottom Line We recently removed shares of U.S. Steel (X) from our recommended list back on Apr.19, when the stock was trading at $59.81. The company has a .36% dividend yield, based on last night’s closing stock price of $55.03. The stock has technical support in the $50-$51 price area. If the shares can firm up, we see overhead resistance around the $60 price level. We would remain on the sidelines for now. United States Steel Corporation ( X ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Goldman Adds U.S. Steel to its “Conviction Buy” List (X)

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