United States Steel (X) closed the most recent trading day at $19.89, moving +1.58% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.
Heading into today, shares of the steel maker had lost 19.26% over the past month, lagging the Basic Materials sector’s loss of 6.58% and the S&P 500’s loss of 8.32% in that time.
United States Steel will be looking to display strength as it nears its next earnings release. On that day, United States Steel is projected to report earnings of $3.33 per share, which would represent a year-over-year decline of 1.19%. Meanwhile, our latest consensus estimate is calling for revenue of $5.87 billion, up 16.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.98 per share and revenue of $21.36 billion. These totals would mark changes of -18.55% and +5.36%, respectively, from last year.
Any recent changes to analyst estimates for United States Steel should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
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 6.59% lower within the past month. United States Steel currently has a Zacks Rank of #3 (Hold).
In terms of valuation, United States Steel is currently trading at a Forward P/E ratio of 1.78. This represents a discount compared to its industry’s average Forward P/E of 2.99.
The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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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