An Insider Is Looking for a Rebound at United States Steel Corporation (X)

We can compare U.S. Steel to ArcelorMittal (ADR) (NYSE:MT), AK Steel Holding Corporation (NYSE:AKS), and Nucor Corporation (NYSE:NUE). ArcelorMittal (ADR) (NYSE:MT) and AK Steel Holding Corporation (NYSE:AKS) are priced at a small discount to the company, with forward P/Es in the 9-10 range, though they too have been struggling recently. Last quarter AK Steel Holding Corporation (NYSE:AKS) reported that its revenue had fallen by 9% compared to the first quarter of 2012, and ArcelorMittal (ADR) (NYSE:MT) was recently forced to cut its dividend. They’ve each seen at least a 20% decline in price over the last year as well. Nucor Corporation (NYSE:NUE), like United States Steel Corporation (NYSE:X), trades at 12 times forward earnings estimates. It is actually profitable, but experienced double-digit percentage declines on both top and bottom lines in its most recent quarter compared to the same period in the previous year.

We’re certainly very wary of investing in United States Steel Corporation (NYSE:X) or any company tied to steel at this time, but the insider activity which we are seeing is at least somewhat suggestive that company insiders believe that the sell-side is onto something. The purchases shouldn’t serve as the only reason for investors to actually put money into steel related stocks but we’ll be sure to monitor future developments in the industry including any more insider buys.

Disclosure: I own no shares of any stocks mentioned in this article.