U.S. Steel's stock has retreated about 15%, to 44, from its mid-September peak. It could keep falling into the low 30s as industrial end markets struggle to recover.

Many industry analysts think Nucor (NUE), AK Steel (AKS), ArcelorMittal (MT) and other steel companies are better buys than U.S. Steel these days.

Many industry analysts think Nucor (NUE), AK Steel (AKS), ArcelorMittal (MT) and other steel companies are better buys than U.S. Steel these days.

Deutsche Bank's David Martin favors mini-mill operator Nucor because its production costs are lower. Nucor's stock is flat this year, at around 45, and sells for six times pretax earnings (as measured by Ebitda, or earnings before interest, taxes, depreciation and amortization), compared with an industry multiple of seven. "Recent results have been disappointing, but some of the negative trends in pricing and high inventory costs are set to reverse," he says.

Tanners, of UBS, favors Steel Dynamics (STLD), another mini-mill specialist, which she says is in a better position than U.S. Steel to restart production quickly and respond to spot demand. "It doesn't have the same high cost structure as U.S. Steel," she says.

At a recent 27, McGraw-Hill's shares have significant upside for patient investors. Our sum-of-the parts analysis pegs the company's value at 35 a share, or more.

After doubling in less than a year, the stock could fall by 30% as Energizer's batteries, shaving gear and other products suffer from market shifts and weak ad support.

But caution is called for now that the stock has nearly doubled since March. Started in the 1880s with a patented bedspring, Leggett has recently won over investors by cutting costs and shedding less profitable businesses, and profit margins could continue to improve when it reports quarterly earnings on Oct. 22. But analysts are already penciling in an ambitious 55% rebound in profits next year, which assumes tremendous operating leverage since few expect revenue to swell by more than the single digits. The forecast is for Leggett to earn $0.64 this year and $0.99 in 2010. That's shy of the $1.04 annual dividend the company promises to pay. Critics reckon the company needs to earn $2 a share to support such a payout, and while Leggett is prepared to dole out what it can't earn -- dipping into working capital and relying on recent asset sales -- how long can management keep that up if the economy doesn't rebound quickly and resoundingly? At about 19, shares trade at 19 times projected 2010 earnings -- well above the overall market and at the top end of its decade range. With free cash flow steered toward servicing its dividend, Leggett has less ammunition to fund expansion or to make acquisitions. Divesting businesses also means Leggett has shrunk its revenue base, and pressure is on management to keep generating enough cash to meet its lofty targets.