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United States Steel (X) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, United States Steel (X - Free Report) closed at $27.56, marking a -0.47% move from the previous day. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 10.96%.

Coming into today, shares of the steel maker had gained 7.45% in the past month. In that same time, the Basic Materials sector gained 3.45%, while the S&P 500 lost 0.23%.

United States Steel will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, down 84.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.95 billion, down 29.69% from the year-ago period.

Any recent changes to analyst estimates for United States Steel should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.94% higher within the past month. United States Steel is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that United States Steel has a Forward P/E ratio of 25.33 right now. For comparison, its industry has an average Forward P/E of 9.88, which means United States Steel is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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