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United States Steel (X) Gains But Lags Market: What You Should Know

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United States Steel (X - Free Report) closed the most recent trading day at $13.90, moving +0.07% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.44%.

Prior to today's trading, shares of the steel maker had gained 1.17% over the past month. This has outpaced the Basic Materials sector's gain of 0.34% and lagged the S&P 500's gain of 1.51% 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 -$0.65, down 135.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.75 billion, down 25.5% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.07 per share and revenue of $12.86 billion, which would represent changes of -98.69% and -9.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for X. Recent revisions tend to reflect the latest near-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 shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 43.33% higher. X is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, X is holding a Forward P/E ratio of 193.81. This valuation marks a premium compared to its industry's average Forward P/E of 13.89.

It is also worth noting that X currently has a PEG ratio of 24.23. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% 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.

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