Why United States Steel Stock Rocketed 43% in the First Half of 2021
Shares of United States Steel (NYSE: X) surged 43.1% in the first six months of 2021, according to data provided by S&P Global Market Intelligence. The stock didn't just ride the wave of optimism in infrastructure repair and upgrade; it also got a leg up from analyst upgrades and strong numbers.
It was only after March that U.S. Steel shares started to rally. Just as manufacturing activity started to pick up with the economy's reopening, President Joe Biden's unveiling of a nearly $2 trillion infrastructure plan later in March lit a fire under steel stocks. That Biden launched his plan just weeks after his election as the President showed how serious he is about rebuilding America's infrastructure -- something that's long overdue.
Importantly, U.S. Steel entered the recovery phase with a meaningful acquisition under its belt: It acquired a full stake in Big River Steel in January, a steel company that owned the first Leadership in Energy and Environmental Design (LEED)-certified facility in the U.S. and doubled its annual steel production capacity in 2020. This facility is a significant addition to U.S. Steel's portfolio as it's a mini-mill, which is more cost-effective and flexible as compared to traditional steel mills that use blast furnaces. (The use of mini-mills, in fact, is one of the strongest reasons why Nucor could race past competitors and become the largest and most efficient steel producer in the U.S.)
Source Fool.com