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United States Steel (X) Gains But Lags Market: What You Should Know

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United States Steel (X - Free Report) closed at $20.86 in the latest trading session, marking a +1.16% move from the prior day. This change lagged the S&P 500's 1.42% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 3.69%.

Heading into today, shares of the steel maker had gained 22.45% over the past month, outpacing the Basic Materials sector's gain of 2.56% and the S&P 500's loss of 2.26% in that time.

Investors will be hoping for strength from X as it approaches its next earnings release. The company is expected to report EPS of $0.87, up 219.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.87 billion, up 40.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $13.43 billion, which would represent changes of +133.4% and +37.89%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for X. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 4.75% higher. X is currently a Zacks Rank #3 (Hold).

Investors should also note X's current valuation metrics, including its Forward P/E ratio of 13.2. For comparison, its industry has an average Forward P/E of 10.56, which means X is trading at a premium to the group.

It is also worth noting that X currently has a PEG ratio of 1.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. X's industry had an average PEG ratio of 1.07 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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