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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 at $23.86 in the latest trading session, marking a +1.27% move from the prior day. This move outpaced the S&P 500's daily gain of 1.22%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 4.63%.

Heading into today, shares of the steel maker had gained 7.58% over the past month, outpacing the Basic Materials sector's gain of 2.96% and the S&P 500's gain of 6.22% in that time.

Investors will be hoping for strength from United States Steel as it approaches its next earnings release. On that day, United States Steel is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 52.85%. Our most recent consensus estimate is calling for quarterly revenue of $4.99 billion, down 20.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.17 per share and revenue of $17.85 billion. These totals would mark changes of -58.09% and -15.27%, respectively, from last year.

Any recent changes to analyst estimates for United States Steel should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.5% higher. United States Steel is currently a Zacks Rank #3 (Hold).

Digging into valuation, United States Steel currently has a Forward P/E ratio of 5.64. This represents a discount compared to its industry's average Forward P/E of 8.38.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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