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“Is the X stock a good buy right now?”. This analysis uses 2 valuation methods to determine an X Stock Forecast, which can help us answer this popular question.
As you may know, the United states steel corporation (NYSE: X) is a leader in the Steel industry. This analysis will examine X’s key financial metrics and ratios to determine a price prediction for its stock. Keep in mind that this stock forecast takes several assumptions into account, which may hinder the accuracy of the price target achieved. I’ll share my X stock price prediction, then show you the approach and assumptions that I used to calculate my X stock forecast.
Stock forecasting is hard, I don’t know what the future will hold, and neither do Wall Street Analysts. If either of us could, we would be extremely wealthy and never have to work again. What I can say, however, is that we can use available data to determine a reasonable X stock forecast to make us more informed and knowledgeable about our potential investments.
X Stock Forecast for 2025 is $32.62 Per Share
The United states steel corporation stock price prediction of $32.62 was derived from 2 main valuation methods (which are averaged for the final price target you see above). I’ll dive into the approach to show you how I determined how I “predicted” a stock price of $32.62 for X.
- X Financial Growth Metrics
- X Comparable Companies Analysis
X Stock Forecast Using PE Ratio and EPS
This section of the analysis will focus on X’s forward P/E and EPS ratio estimates in order to get a rough estimate for their future stock price.
X’s forward Earnings Per Share (in 2025) have been estimated to be 7.25. Furthermore, X’s forward Price to Earnings Ratio has been forecasted to reach 2.94. By having both X’s forward P/E and EPS, we can multiply them together to reach an X stock forecast of $21.32 per share
There are other ways to predict the price for X but I would argue that P/E, EPS, and Earnings Growth are the most commonly used financial metrics by analysts and investors. This is why I used them to forecast X’s stock price.
X Stock Forecast for 2025 Using Comparable Analysis
Who are X’s Competitors?
In order to undergo a comparable analysis, we need to outline X’s main competitors. These competitors need to have; a stock, valid financial ratios, operations similar to X, and a market cap similar to X (if possible).
Keeping this in mind, here are X’s closest competitors:
KGC, EXP, MDU, AXTA, BAK, HUN, ASH, ESI, CC, SID
Using a Comparable Analysis to Determine a X Price Forecast
- Price to Book (P/B): X’s current P/B ratio is 0.62, compared to the average P/B ratio of X’s peers being 1.92. This implies that X is undervalued and their share price should change by a factor of 161.29% to be at fair value (based on X’s P/B compared to the P/B of their peers).
- Price to Earnings (P/E): X stock P/E ratio is currently 1.35, compared to the average P/E ratio of X’s peers being 5.53. This implies that X is undervalued and their share price should change by a factor of 409.63% to be at fair value (based on X’s P/E compared to the P/E of their peers).
Overall, X stock is undervalued and needs to experience a change in the stock price of (an average of) 285.46% to be considered “at fair value”. Applying this percentage change to X’s current price of $23.68 implies a forecasted price of $43.92.
Are the X Analyst Ratings in Agreeance With Our Conclusion?
Analyst Ratings have provided a relatively strong indicator of future price movement, which is why they are used to (hopefully) support our X stock forecast. There are a total of 29 analyst ratings for X, which are distributed as follows:
8 Buys
12 Holds
9 Sells
As you may have been able to tell 27.59% of analysts have given the X stock a ‘buy” rating. Based on the current X analyst ratings there seems to be an overall bearish sentiment, with analyst “sell” ratings forming a minority of total ratings given. However, the “sell” minority of ratings slightly edges out the “bullish” minority of ratings.
X Stock Forecast and Conclusion
Let’s end this analysis by using the information accumulated to answer the question that was posed at the very start of this analysis “Is the X stock a buy?”
Based on the overall X stock forecast of $32.62 per share (derived from P/E & EPS, and comparable valuations), and the current price of X is $23.68, I would disagree with the analysts and say X is a buy.
Let me know what you think, happy to dive into other aspects of X to help you make an informed investment decision.
Originally published at https://utradea.com.
