Category: X

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

United States Steel (X Free Report) 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.

X – United States Steel (X) Stock Moves -0.26%: What You Should Know

United States Steel (X Free Report) closed the most recent trading day at $23.20, moving -0.26% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.33%.

Prior to today’s trading, shares of the steel maker had lost 9.85% over the past month. This has lagged the Basic Materials sector’s loss of 0.72% and the S&P 500’s gain of 2.89% in that time.

X will be looking to display strength as it nears its next earnings release. In that report, analysts expect X to post earnings of $2.80 per share. This would mark year-over-year growth of 204.87%. Our most recent consensus estimate is calling for quarterly revenue of $4.67 billion, up 123.35% from the year-ago period.

X’s full-year Zacks Consensus Estimates are calling for earnings of $10.84 per share and revenue of $18.23 billion. These results would represent year-over-year changes of +332.12% and +87.14%, respectively.

Investors might also notice recent changes to analyst estimates for X. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 25.76% higher. X currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, X currently has a Forward P/E ratio of 2.14. This valuation marks a discount compared to its industry’s average Forward P/E of 6.06.

Also, we should mention that X has a PEG ratio of 0.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Steel – Producers was holding an average PEG ratio of 0.28 at yesterday’s closing price.

The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% 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.

To follow X in the coming trading sessions, be sure to utilize Zacks.com.

X – United States Steel (X) Gains But Lags Market: What You Should Know

United States Steel (X Free Report) closed at $24.07 in the latest trading session, marking a +0.29% move from the prior day. This move lagged the S&P 500’s daily gain of 0.52%.

Heading into today, shares of the steel maker had lost 8.12% over the past month, lagging the Basic Materials sector’s loss of 4.56% and the S&P 500’s gain of 2.25% in that time.

X will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.91, up 134.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.66 billion, up 122.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.58 per share and revenue of $17.56 billion. These totals would mark changes of +305.14% and +80.29%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for X. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 33.15% higher. X is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note X’s current valuation metrics, including its Forward P/E ratio of 2.51. Its industry sports an average Forward P/E of 6.46, so we one might conclude that X is trading at a discount comparatively.

Meanwhile, X’s PEG ratio is currently 0.31. 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 was holding an average PEG ratio of 0.31 at yesterday’s closing price.

The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% 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.

To follow X in the coming trading sessions, be sure to utilize Zacks.com.

X – United States Steel (X) Gains As Market Dips: What You Should Know

United States Steel (X Free Report) closed at $23.49 in the latest trading session, marking a +1.64% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.11%.

Coming into today, shares of the steel maker had lost 2.12% in the past month. In that same time, the Basic Materials sector lost 4.58%, while the S&P 500 gained 2.23%.

Wall Street will be looking for positivity from X as it approaches its next earnings report date. In that report, analysts expect X to post earnings of $2.74 per share. This would mark year-over-year growth of 202.62%. Our most recent consensus estimate is calling for quarterly revenue of $4.66 billion, up 122.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.58 per share and revenue of $17.56 billion. These totals would mark changes of +305.14% and +80.29%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for X. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 39.85% higher within the past month. X is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, X is currently trading at a Forward P/E ratio of 2.41. Its industry sports an average Forward P/E of 6.44, so we one might conclude that X is trading at a discount comparatively.

It is also worth noting that X currently has a PEG ratio of 0.3. 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 was holding an average PEG ratio of 0.31 at yesterday’s closing price.

The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

X – U.S. Steel raises Q2 profit guidance on higher steel prices, demand

U.S. Steel Corp.
X,
-7.67%

said late Thursday it expects to report an adjusted net income of about $880 million, or $3.08 a share, boosted by higher steel prices and “strong” demand for flat-rolled steel. Moreover, ongoing “strong demand and low steel inventories are empowering today’s ongoing market improvements. These market fundamentals are showing no signs of slowing down and have us increasingly confident of another strong year in 2022,” the company said. U.S. Steel had guided for adjusted EPS of $2.85. Analysts polled by Factset expect the company to report adjusted EPS of $2.67 when it reports second-quarter earnings likely in August. Shares of U.S. Steel were flat in the extended session Thursday after ending the regular trading day down 7.7%.

X – 3 Big Reasons This Steel Stock Jumped 12.7% in May and Continues to Rally

What happened

Shares of United States Steel (NYSE:X) jumped 12.7% in the month of May, according to data provided by S&P Global Market Intelligence. Strong numbers from the steel manufacturer, a favorable macro environment, and a multitude of analyst upgrades fueled the rally in U.S. Steel stock and continues to drive it higher this month.

So what

U.S. Steel shares kicked off May on a strong note thanks to encouraging first-quarter numbers released on April 29. The industrial company’s sales rose 33% to $3.7 billion and it earned a net profit of $91 million versus a loss of $391 million in the year-ago quarter. During its earnings conference call, management expressed optimism about the steel market thanks to robust demand, rising steel prices, and a potential infrastructure bill under President Joe Biden that should further fuel demand.

A person cutting steel pipes in a factory.

Image source: Getty Images.

On May 4, Credit Suisse echoed U.S. Steel’s sentiments when it bumped its price target on the stock substantially to $35, representing 42% upside from the stock’s closing price on May 3. Credit Suisse believes the steel sector is in a “super cycle.” A week later, Morgan Stanley upped its price target on U.S. Steel stock to $32, citing strong steel prices driven by low steel imports and inventories, among other things.

Fears of Biden rolling back steel tariffs as the U.S. and Europe began negotiations in May could have brought the rally in steel stocks to a grinding halt if not for rising steel prices. Steel tariffs imposed by former President Donald Trump essentially helped the U.S. steel industry ride out the COVID-19 pandemic, which is why steel groups in the U.S. urged Biden to retain tariffs last month.

Meanwhile, the price of hot-rolled coil (HRC), also the most widely used steel product and therefore a barometer for the steel industry, is hitting record highs. In the first quarter, HRC accounted for 60% of U.S. Steel’s total shipments.

Now what

Unexpected recovery in steel markets has triggered strong investor interest in steel stocks, and there appears to be no stopping the enthusiasm: On June 4, UBS doubled its price target on U.S. Steel shares to $30. The stock is up 5.7% so far in June as of the time of this writing and has rallied nearly 150% in the past year.

Keep an eye on U.S. Steel’s balance sheet, as it added debt worth nearly $2 billion when it acquired electric-arc furnace mill Big River earlier this year, pushing its total debt above $5 billion. The company expects to repay at least $1.8 billion debt in 2021. Its financial fortitude and a potential infrastructure bill could largely decide how far U.S. Steel stock can go.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

X – Why United States Steel Stock Soared Higher in March

What happened

The United States finally appears to be getting serious about addressing its aging infrastructure, and that has investors excited about U.S. Steel (NYSE:X). Shares of the steel giant climbed 57.6% in March, according to data provided by S&P Global Market Intelligence, in anticipation of growing government demand.

So what

Elected officials have been talking about infrastructure for a generation, but investors are buying into President Joe Biden’s plan to rebuild American roads, ports, and bridges and update transit systems. Biden in March rolled out a nearly $1 trillion plan to modernize U.S. infrastructure, and it should mean a lot of added demand for steel.

Rolled steel being produced in a factory.

Image source: Getty Images.

Investors are buying in ahead of the order flow. U.S. Steel shares are now up more than 200% in the last six months, including the strong March performance.

Even without the added government demand, the outlook for steel and pricing has been improving as the economy reopens. U.S. Streel said mid-month it expects to earn $1.02 per share in the first quarter, better than the $0.72 consensus. BMO Capital analyst David Gagliano actually called that guidance “somewhat disappointing,” given that he sees the current rally in steel prices extending into the second half of 2021.

Now what

U.S. Steel’s stock price appreciation in recent months has been impressive, but a word of caution is needed. Industrial stocks tend not to sustain these sorts of jumps, and it appears after U.S. Steel’s strong run, the upside is likely limited from here. The company received a number of downgrades to hold during the month on valuation.

And Biden’s infrastructure plan has a lot of hurdles to clear in Congress before it is law, with a lot of opportunities for the size to be cut or priorities changed. There is also some reason to question how much of the steel demand would be provided by U.S. producers, given the higher prices compared to imports.

Be careful jumping on to this rally.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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