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U.S. Steel Can Beat the Experts

By Jim Cramer

 About this article:
 Will U.S. Steel go from $17.91 in earnings in 2008 to a loss in 2009? Are we going back to the days of Bethlehem Steel, where you would get those swings and then a focus on the viability of the company? The trailing multiple -- 1.5 times earnings -- is astounding. That's right, the trailing multiple is 1.5 times earnings, something I have only see in the old Bethlehem Steel in the mid-'80s. I think U.S. Steel, which is predicted to earn a dollar and change, can do better than that. I think that its combination of different kinds of steel, including the now-hated tubular steel that was dependent on booming oil, will still produce a decent return, more than the Street believes possible. I imagine that traders believe the 4.2% yield is going to be sacrificed as part of the downturn. Sure, the company has debt --...

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