United States Steel (X) shares soared 5.1% in the last trading session to close at $54.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.3% gain over the past four weeks.
U.S. Steel’s shares rallied after President Trump approved its partnership with Nippon Steel. Along with this approval, the companies have also completed the U.S. Department of Justice review process. The companies also signed a National Security Agreement (“NSA”) with the U.S. Government. Under the NSA, around $11 billion in new investments will be made by 2028, including an initial investment in a greenfield project expected to be completed after 2028.
This steel maker is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -51.2%. Revenues are expected to be $4.07 billion, down 1.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For U.S. Steel, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on X going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
U.S. Steel belongs to the Zacks Steel - Producers industry. Another stock from the same industry, ArcelorMittal (MT), closed the last trading session 2.9% higher at $30.99. Over the past month, MT has returned -1.9%.
ArcelorMittal's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. Compared to the company's year-ago EPS, this represents a change of +76.2%. ArcelorMittal currently boasts a Zacks Rank of #3 (Hold).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>United States Steel Corporation (X) : Free Stock Analysis Report
ArcelorMittal (MT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
