US Steel Shares Outperform S&P 500 - Deliver 30% Higher Returns In Single Year
Portfolio Pulse from Surbhi Jain
United States Steel Corp (NYSE:X) stock surged over 28% in premarket trading due to its acquisition by Nippon Steel Corp (OTC:NISTF), valuing the company at $14.9 billion. Over the past year, U.S. Steel has outperformed the S&P 500, with a 59.3% return compared to the S&P 500 ETF's 23.6% gain. The company's stock also outperformed the SPDR S&P Metals & Mining ETF (NYSE:XME) by 40%, with XME holders gaining 17.5% over the same period.
December 18, 2023 | 1:51 pm
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NEUTRAL IMPACT
iShares Core S&P 500 ETF (NYSE:IVV) also saw a 23.6% increase over the past year, yet it was outpaced by U.S. Steel's performance.
IVV's performance is consistent with the broader market and is not directly influenced by U.S. Steel's recent acquisition news.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
SPDR S&P 500 ETF Trust (NYSE:SPY) is up over 23.6% over the past year, but has been outperformed by U.S. Steel's 59.3% return.
While SPY's performance is solid, it is not directly impacted by U.S. Steel's acquisition news, but the comparison highlights the strength of U.S. Steel's stock.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Vanguard 500 Index Fund ETF (NYSE:VOO) experienced a 23.6% gain over the past year, which is less than U.S. Steel's 59.3% return.
VOO tracks the S&P 500 and its performance is not directly affected by U.S. Steel's acquisition, but it serves as a benchmark for comparison.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
U.S. Steel's stock price surged over 28% in premarket trading following the acquisition announcement by Nippon Steel, significantly outperforming the S&P 500.
The acquisition news is a strong positive catalyst for U.S. Steel's stock, likely leading to increased investor confidence and a potential short-term price surge.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
U.S. Steel, which makes up 4.81% of the XME ETF portfolio, has outperformed the ETF with a 59.3% return compared to XME's 17.5% over the past year.
U.S. Steel's strong performance and its significant weight in the XME ETF could positively influence the ETF's price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80