Back to top

Image: Bigstock

United States Steel (X) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

United States Steel (X - Free Report) closed the most recent trading day at $26.26, moving +1.43% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.88%.

Prior to today's trading, shares of the steel maker had lost 0.27% over the past month. This has lagged the Basic Materials sector's gain of 4.83% and the S&P 500's gain of 0.15% in that time.

Investors will be hoping for strength from X as it approaches its next earnings release. On that day, X is projected to report earnings of $2.32 per share, which would represent year-over-year growth of 186.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.86 billion, up 132.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.20 per share and revenue of $16.68 billion, which would represent changes of +254.18% and +71.21%, respectively, from the prior year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 24.97% higher within the past month. X is currently a Zacks Rank #3 (Hold).

Investors should also note X's current valuation metrics, including its Forward P/E ratio of 3.6. For comparison, its industry has an average Forward P/E of 7.23, which means X is trading at a discount to the group.

Also, we should mention that X has a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Producers was holding an average PEG ratio of 0.55 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% 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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

United States Steel Corporation (X) - free report >>

Published in