In the latest trading session, United States Steel (X) closed at $26.80, marking a -1.51% move from the previous day. This change lagged the S&P 500’s daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Coming into today, shares of the steel maker had lost 2.65% in the past month. In that same time, the Basic Materials sector lost 4.43%, while the S&P 500 lost 5.39%.
Investors will be hoping for strength from United States Steel as it approaches its next earnings release. On that day, United States Steel is projected to report earnings of $0.21 per share, which would represent a year-over-year decline of 93.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.93 billion, down 24.9% from the year-ago period.
X’s full-year Zacks Consensus Estimates are calling for earnings of $1.91 per share and revenue of $16.02 billion. These results would represent year-over-year changes of -80.8% and -23.94%, respectively.
Any recent changes to analyst estimates for United States Steel should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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 27.19% higher within the past month. United States Steel is currently a Zacks Rank #2 (Buy).
Looking at its valuation, United States Steel is holding a Forward P/E ratio of 14.28. Its industry sports an average Forward P/E of 9.95, so we one might conclude that United States Steel is trading at a premium comparatively.
The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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