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United States Steel (X) Increases Yet Falls Behind Market: What Investors Need to Know

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United States Steel (X - Free Report) closed the latest trading day at $47.91, indicating a +0.17% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.22%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.32%.

Prior to today's trading, shares of the steel maker had lost 0.29% over the past month. This has was narrower than the Basic Materials sector's loss of 7.44% and lagged the S&P 500's gain of 1.61% in that time.

The investment community will be paying close attention to the earnings performance of United States Steel in its upcoming release. The company is predicted to post an EPS of $0.25, indicating a 71.26% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.78 billion, down 12.81% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for United States Steel. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 16.31% higher. United States Steel presently features a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, United States Steel is holding a Forward P/E ratio of 14.92. This represents a premium compared to its industry's average Forward P/E of 9.32.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 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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