United States Story

United States Steel Corporation -- USA Stock  

USD 37.08  0.03  0.081%

Macroaxis News
  
By David Taylor

It is the beginning of the new year and a good time to assess where things are in the financial world. Specifically, I wanted to look at the U.S. equity markets. Since the November election, the Dow has been on a massive tear upward. The composite index has risen from 17,883 to just a whisper under 20,000, a move of nearly 12% in under 2 month time.

When you see this move on a chart, or just sit back and think about it, you have to ask is this an appropriate time to buy into any stocks seeing that there has been a dramatic move upward? 

Steel Works Etc
Fama & French Classification
With the overall market pricetoearnings ratio at 25 is it too late to buy

The stock market has soared nearly 12% in just 8 weeks since the election in November. The price-to-earnings ratio is now sitting at 25, which is about 60% higher than average; the average is 15. If the market is so overpriced, what is the next move overall? And, is it too late to get into the market? Here are some ideas on how to find bargain-priced gems in a market that is likely to sell off.




It is the beginning of the new year and a good time to assess where things are in the financial world. Specifically, I wanted to look at the U.S. equity markets. Since the November election, the Dow has been on a massive tear upward. The composite index has risen from 17,883 to just a whisper under 20,000, a move of nearly 12% in under 2 months time.

When you see this move on a chart, or just sit back and think about it, you have to ask is this an appropriate time to buy into any stocks seeing that there has been a dramatic move upward.

The answer to that question is the answer to any question: that depends. There is never a straight-line, linear answer to any question. It may be that the overall market is too high. But, it may also be that there are opportunities within any one specific equity.

Looking at the overall market the Price-to-earnings ratio is high. It is sitting at 25.83 at the time of this writing, although the stock market is off today, the first trading day of the year. The average over the past 25 years for price-to-earnings ratio is 15. That is 60% higher than average. If you consider the overall market, for the market to get back in line with the average, companies are either going to have to increase earnings markedly, almost 60% or the market is going to have to sell off back down to the average price-to-earnings ratio; that sell-off is going to have to be the same of 60%.

What do I really think is most likely? I think there is going to be a hybrid move of both scenarios, earnings will increase throughout the year while certain stocks will come down in price to more moderate levels. 

When you consider a price-to-earnings ratio of 25, what are you really getting? Say you are looking at a stock trading at $100 per share. With a PE of 25, you are getting $4.00 per share in earnings. That means the current level of expectation of earnings for that company is merely $4.00. That is only 4% per year return on investment. While that is still above the current rate of most interest rates it is a very low rate of return overall.? There are plenty of stocks that are selling at better rates of return. So, why would you get involved in these higher priced stocks? 

Most likely, professional traders, who are savvy enough to see the overall landscape of the market, will begin taking profits. This will push prices lower and lower. The market will sell off during this process. At the same time, lower-priced stocks, with lower price-to-earnings ratios, will see buyers step into the market on these stocks and keep the prices up. This whole process will not happen in just one day.? Nor will it take and entire year. So, there is going to be a balanced move in both the buying and selling.

There are plenty of opportunities in the stock market right now. But, you have to pick and choose what you are looking for. Considering where a stock is at this moment versus where it will be in a year is a tricky process. Look for companies that will more easily expand their bottom line in an economic landscape that is growing faster than expected. First tier companies are excellent staring points, versus manufacturing companies that will see new orders coming in from retailers.

Story Momentum

This story from Macroaxis reported on January 3, 2017 contributed to the next trading day price increase.The trading price change to the next closing price was 7.55% . The trading price change when the story was published to the current price is 4.35% .

Similar stores for United States

a day ago at www.macroaxis.com 
Payment of 238 shares by Pipasu Soni of United States subject to Rule 16b-3
Macroaxis News
Filed transaction by United States Steel Corp officer. Payment of exercise price or tax liability by delivering or withholding securities
over a month ago at http://stocksmarketcap.com 
Exercise or conversion by Christine Breves of 3606 shares of United States subject to Rule 16b-3
news
Filed transaction by United States Steel Corp officer. Exercise or conversion of derivative security exempted pursuant to Rule 16b-3
over two months ago at http://globenewswire.com 
US Steel Announces Retirement of David J. Rintoul, Senior Vice President ...
news
GlobeNewswire - Jan 31, 2018 ... career with U. S. Steel in 2007 as general manager of Granite City Works, bringing 30 years of steel industry experience to this role. US Steel senior vice president announces retirement - Pittsburgh Business Times GrafTech International names David J. Rintoul as president and CEO - Crains Cleveland Business
over three months ago at http://www.stocknewsgazette.com 
United States exotic insider transaction detected
news
Filed transaction by United States Steel Corp officer. Unconventional Insider trading

Price to Earnings To Growth

Price to Earnings To Growth Comparative Analysis
  Price to Earnings To Growth 
      United States Comparables 
United States is rated below average in price to earnings to growth category among related companies. PEG Ratio indicates potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate.Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates future growth of a firm. The low PEG ratio usually implies that equity instrument is undervalued; where as PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
See also United States Hype Analysis, United States Correlation and United States Performance. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .