In the latest trading session, United States Steel (X - Free Report) closed at $10.72, marking a +0.85% move from the previous day. This move outpaced the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 0.83%.
Prior to today's trading, shares of the steel maker had lost 3.89% over the past month. This has was narrower than the Basic Materials sector's loss of 4.4% and lagged the S&P 500's loss of 0.1% in that time.
Investors will be hoping for strength from X as it approaches its next earnings release, which is expected to be October 31, 2019. The company is expected to report EPS of -$0.26, down 114.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.03 billion, down 18.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.01 per share and revenue of $12.79 billion. These totals would mark changes of -99.81% and -9.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for X. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 98.83% lower within the past month. X is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that X has a Forward P/E ratio of 1328.75 right now. Its industry sports an average Forward P/E of 12.03, so we one might conclude that X is trading at a premium comparatively.
We can also see that X currently has a PEG ratio of 166.09. 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. The Steel - Producers was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 6% 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.