United States Steel (X) closed at $33.34 in the latest trading session, marking a +0.12% move from the prior day. This change outpaced the S&P 500's 1.3% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Prior to today's trading, shares of the steel maker had gained 37.43% over the past month. This has outpaced the Basic Materials sector's gain of 6.93% and the S&P 500's loss of 5.33% in that time.
Investors will be hoping for strength from United States Steel as it approaches its next earnings release. The company is expected to report EPS of $3.85, up 256.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.36 billion, up 46.35% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.19 per share and revenue of $18.86 billion, which would represent changes of -31.82% and -6.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for United States Steel. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.24% lower within the past month. United States Steel is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, United States Steel currently has a Forward P/E ratio of 3.62. This represents a discount compared to its industry's average Forward P/E of 4.46.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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