Why United States Steel (X) Outpaced the Stock Market Today

United States Steel (X) closed at $41.88 in the latest trading session, marking a +1.16% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.11% for the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.23%.

Prior to today's trading, shares of the steel maker had lost 13.32% over the past month. This has lagged the Basic Materials sector's gain of 6.66% and the S&P 500's gain of 1.5% in that time.

The investment community will be closely monitoring the performance of United States Steel in its forthcoming earnings report. In that report, analysts expect United States Steel to post earnings of $0.82 per share. This would mark year-over-year growth of 6.49%. In the meantime, our current consensus estimate forecasts the revenue to be $4.21 billion, indicating a 5.87% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.47 per share and a revenue of $16.45 billion, signifying shifts of -26.64% and -8.86%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for United States Steel. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.38% rise in the Zacks Consensus EPS estimate. As of now, United States Steel holds a Zacks Rank of #3 (Hold).

In the context of valuation, United States Steel is at present trading with a Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 10.38, which means United States Steel is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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