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United States Steel (X) Beats Stock Market Upswing: What Investors Need to Know

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United States Steel (X - Free Report) closed the latest trading day at $38.86, indicating a +0.7% change from the previous session's end. This change outpaced the S&P 500's 0.27% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.19%.

The steel maker's shares have seen an increase of 12.31% over the last month, surpassing the Basic Materials sector's gain of 8.1% and the S&P 500's gain of 6.94%.

Market participants will be closely following the financial results of United States Steel in its upcoming release. The company is expected to report EPS of $0.19, down 78.16% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.87 billion, indicating a 10.69% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $4.33 per share and a revenue of $17.83 billion, demonstrating changes of -56.48% and -15.37%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United States Steel. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.98% higher within the past month. At present, United States Steel boasts a Zacks Rank of #2 (Buy).

With respect to valuation, United States Steel is currently being traded at a Forward P/E ratio of 8.92. This denotes a premium relative to the industry's average Forward P/E of 8.82.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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