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United States Steel (X) Stock Sinks As Market Gains: Here's Why

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United States Steel (X - Free Report) closed the latest trading day at $35.90, indicating a -0.08% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.45%.

Shares of the steel maker have appreciated by 5.74% over the course of the past month, underperforming the Basic Materials sector's gain of 5.89% and outperforming the S&P 500's gain of 4.91%.

Investors will be eagerly watching for the performance of United States Steel in its upcoming earnings disclosure. In that report, analysts expect United States Steel to post earnings of $0.19 per share. This would mark a year-over-year decline of 78.16%. Our most recent consensus estimate is calling for quarterly revenue of $3.87 billion, down 10.69% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.33 per share and a revenue of $17.83 billion, indicating changes of -56.48% and -15.37%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for United States Steel. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.98% higher. United States Steel is currently a Zacks Rank #2 (Buy).

From a valuation perspective, United States Steel is currently exchanging hands at a Forward P/E ratio of 8.3. This denotes no noticeable deviation relative to the industry's average Forward P/E of 8.3.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.

To follow X in the coming trading sessions, be sure to utilize Zacks.com.


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