Why United States Steel (X) Dipped More Than Broader Market Today
United States Steel (X) closed at $38.59 in the latest trading session, marking a -0.9% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.88%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq decreased by 2.05%.
The steel maker's shares have seen a decrease of 2.77% over the last month, not keeping up with the Basic Materials sector's loss of 0.32% and the S&P 500's loss of 2.57%.
Investors will be eagerly watching for the performance of United States Steel in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 2, 2024. The company is expected to report EPS of $0.78, up 1.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.22 billion, down 5.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $16.61 billion, which would represent changes of -27.91% and -7.98%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United States Steel. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.55% lower. At present, United States Steel boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, United States Steel is holding a Forward P/E ratio of 11.43. This valuation marks a premium compared to its industry's average Forward P/E of 10.22.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 36% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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United States Steel Corporation (X) : Free Stock Analysis Report
