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United States Steel (X) Dips More Than Broader Markets: What You Should Know

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United States Steel (X - Free Report) closed at $24.77 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the steel maker had gained 7.08% over the past month, outpacing the Basic Materials sector's gain of 6.68% and the S&P 500's gain of 3.67% in that time.

United States Steel will be looking to display strength as it nears its next earnings release. On that day, United States Steel is projected to report earnings of $5.01 per share, which would represent year-over-year growth of 1955.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 118.43% from the year-ago period.

It is also important to note the recent changes to analyst estimates for United States Steel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.87% higher. United States Steel is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, United States Steel is holding a Forward P/E ratio of 2.81. Its industry sports an average Forward P/E of 5.55, so we one might conclude that United States Steel is trading at a discount comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow X in the coming trading sessions, be sure to utilize Zacks.com.


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