Prediction: 2 Stocks That Will Be Worth More Than United States Steel 5 Years From Now
United States Steel's (NYSE: X) place in history is secure, given how important the company was to the creation of the steel industry. But US Steel is no longer the industry-leading company it once was. Here's what's going on with this iconic steelmaker, and why peers Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) will likely be worth more than US Steel in five years.US Steel makes steel, but that's not really the important thing here. It is the way in which US Steel makes steel that's notable.Although it has diversified its production processes, the business was built on blast furnaces. This is an older steelmaking technology that uses iron ore and metallurgical coal to create primary steel. This is still an important thing to do, but blast furnaces are only profitable when they are run at high utilization rates.Continue reading
United States Steel's (NYSE: X) place in history is secure, given how important the company was to the creation of the steel industry. But US Steel is no longer the industry-leading company it once was. Here's what's going on with this iconic steelmaker, and why peers Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) will likely be worth more than US Steel in five years.
US Steel makes steel, but that's not really the important thing here. It is the way in which US Steel makes steel that's notable.
Although it has diversified its production processes, the business was built on blast furnaces. This is an older steelmaking technology that uses iron ore and metallurgical coal to create primary steel. This is still an important thing to do, but blast furnaces are only profitable when they are run at high utilization rates.
