In the latest trading session, United States Steel (X - Free Report) closed at $10.77, marking a -0.19% move from the previous day. This move lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 1.4%.
Prior to today's trading, shares of the steel maker had lost 6.98% over the past month. This has lagged the Basic Materials sector's loss of 0.09% and the S&P 500's gain of 0.38% in that time.
Investors will be hoping for strength from X as it approaches its next earnings release. The company is expected to report EPS of -$0.28, down 115.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.09 billion, down 17.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $13.08 billion. These totals would mark changes of -96.83% and -7.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for X. These recent revisions tend to reflect the evolving nature of short-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.
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 past month, the Zacks Consensus EPS estimate has moved 75.06% lower. X is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, X is holding a Forward P/E ratio of 62.85. For comparison, its industry has an average Forward P/E of 10.61, which means X is trading at a premium to the group.
It is also worth noting that X currently has a PEG ratio of 7.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.