United States Steel (X) closed at $41.88 in the latest trading session, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which rose 0.11% on the day. At the same time, the Dow Jones Industrial Average fell 0.11%, and the tech-heavy Nasdaq rose 0.23%.
Prior to today’s trading, shares of the steelmaker had fallen 13.32% over the past month. This lagged the Basic Materials sector’s 6.66% gain and the S&P 500’s 1.5% gain over that period.
The investment community will be closely monitoring United States Steel’s performance in its upcoming earnings report. In the same report, analysts expect United States Steel to post earnings of $0.82 per share. This represents a year-on-year growth of 6.49%. Meanwhile, our current consensus estimate calls for revenue of $4.21 billion, representing a decrease of 5.87% compared to the same period last year.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $16.45 billion, which would represent changes of -26.64% and -8.86%, respectively, from the prior year.
Investors may also notice recent changes to analyst estimates for United States Steel. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions indicate analyst confidence in the company’s business performance and earnings potential.
Our research suggests that these estimate changes have a direct relationship with future stock performance. To benefit from this, we have established the Zacks Rank, a proprietary model that considers these estimate changes and provides an investment 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 generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% higher. United States Steel currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, United States Steel is currently trading at a Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 10.38, which means United States Steel is trading at a premium to the group.
The steel manufacturing industry is part of the basic materials sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by determining the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
In subsequent trading sessions, remember to utilize Zacks.com to monitor all of these metrics impacting the stock and more.
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