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Tale of the Tape

Looking for a stock that might be in a good position to beat earnings at its next report? Consider United States Steel Corp. (X - Analyst Report), a firm in the Steel industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, X has beaten estimates by at least 30% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, X expected to incur loss of 81 cents per share, while it actually produced loss of 54 cents per share, a beat of 33.3%. Meanwhile, for the most recent quarter, the company looked to incur loss of 43 cents a share, when it actually incurred loss of 14 cents per share, representing a 67.4% positive surprise.
Thanks in part to this history, recent estimates have been moving higher for United States Steel. In fact, the Earnings ESP for X is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for X, as the firm currently has a Zacks Earnings ESP of 5.51%, so another beat could be around the corner.

This is particularly true when you consider that X has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that X could see another beat at its next report, especially if recent trends are any guide.

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