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

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In the latest trading session, United States Steel (X - Free Report) closed at $17.62, marking a -1.29% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.03%.

Prior to today's trading, shares of the steel maker had lost 21.3% over the past month. This has was narrower than the Basic Materials sector's loss of 25.14% and lagged the S&P 500's loss of 6.03% in that time.

Investors will be hoping for strength from United States Steel as it approaches its next earnings release. The company is expected to report EPS of $3.33, down 1.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.87 billion, up 16.83% from the year-ago period.

X's full-year Zacks Consensus Estimates are calling for earnings of $10.98 per share and revenue of $21.36 billion. These results would represent year-over-year changes of -18.55% and +5.36%, respectively.

Investors might also notice recent changes to analyst estimates for United States Steel. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.39% lower within the past month. United States Steel is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note United States Steel's current valuation metrics, including its Forward P/E ratio of 1.63. Its industry sports an average Forward P/E of 2.66, 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 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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