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

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United States Steel (X - Free Report) closed the most recent trading day at $31.04, moving -0.16% from the previous trading session. This change lagged the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Coming into today, shares of the steel maker had gained 28.15% in the past month. In that same time, the Basic Materials sector lost 4.67%, while the S&P 500 lost 1.63%.

Wall Street will be looking for positivity from United States Steel as it approaches its next earnings report date. In that report, analysts expect United States Steel to post earnings of $0.93 per share. This would mark a year-over-year decline of 52.31%. Our most recent consensus estimate is calling for quarterly revenue of $4.36 billion, down 16.26% from the year-ago period.

X's full-year Zacks Consensus Estimates are calling for earnings of $3.97 per share and revenue of $17.95 billion. These results would represent year-over-year changes of -60.1% and -14.79%, respectively.

It is also important to note the recent changes to analyst estimates for United States Steel. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.72% lower. United States Steel is currently a Zacks Rank #4 (Sell).

Looking at its valuation, United States Steel is holding a Forward P/E ratio of 7.75. This represents a discount compared to its industry's average Forward P/E of 8.42.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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