United States Steel (X) Stock Sinks As Market Gains: What You Should Know

United States Steel (X) closed at $23.04 in the latest trading session, marking a -0.09% move from the prior day. This move lagged the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the steel maker had lost 1.83% over the past month. This has lagged the Basic Materials sector's gain of 2.47% and the S&P 500's gain of 3.28% in that time.

Investors will be hoping for strength from X as it approaches its next earnings release, which is expected to be July 29, 2021. The company is expected to report EPS of $3.11, up 216.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.7 billion, up 124.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.51 per share and revenue of $18.38 billion, which would represent changes of +346.47% and +88.71%, respectively, from the prior year.

Any recent changes to analyst estimates for X should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 20.17% higher. X currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that X has a Forward P/E ratio of 2 right now. Its industry sports an average Forward P/E of 5.86, so we one might conclude that X is trading at a discount comparatively.

Investors should also note that X has a PEG ratio of 0.25 right now. 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 industry currently had an average PEG ratio of 0.28 as of yesterday's close.

The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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