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

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United States Steel (X - Free Report) closed the most recent trading day at $27.75, moving +1.43% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.47%.

Heading into today, shares of the steel maker had gained 3.83% over the past month, outpacing the Basic Materials sector's loss of 2.29% and the S&P 500's loss of 0.12% in that time.

Wall Street will be looking for positivity from X as it approaches its next earnings report date. In that report, analysts expect X to post earnings of $2.32 per share. This would mark year-over-year growth of 186.89%. Meanwhile, our latest consensus estimate is calling for revenue of $4.86 billion, up 132.55% from the prior-year quarter.

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.

Any recent changes to analyst estimates for X should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.04% higher. X is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note X's current valuation metrics, including its Forward P/E ratio of 3.8. Its industry sports an average Forward P/E of 7.38, so we one might conclude that X is trading at a discount comparatively.

Investors should also note that X has a PEG ratio of 0.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Steel - Producers stocks are, on average, holding a PEG ratio of 0.53 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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