Markets
X

United States Steel (X) Dips More Than Broader Markets: What You Should Know

In the latest trading session, United States Steel (X) closed at $18.48, marking a -1.81% move from the previous day. This move lagged the S&P 500's daily loss of 1.58%. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.

Coming into today, shares of the steel maker had lost 28.44% in the past month. In that same time, the Basic Materials sector lost 8.59%, while the S&P 500 lost 6.62%.

X will be looking to display strength as it nears its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $1.93, up 153.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.76 billion, up 20.06% from the prior-year quarter.

X's full-year Zacks Consensus Estimates are calling for earnings of $5.41 per share and revenue of $14.28 billion. These results would represent year-over-year changes of +178.87% and +16.54%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.22% lower. 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 3.48 right now. This represents a discount compared to its industry's average Forward P/E of 7.52.

Meanwhile, X's PEG ratio is currently 0.44. 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 0.55 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 185, which puts it in the bottom 28% of all 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.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United States Steel Corporation (X): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

X

Other Topics

Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More