U.S. Steel (X) Soars 7.9%: Is Further Upside Left in the Stock?

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United States Steel (X) shares rallied 7.9% in the last trading session to close at $26.63. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.2% gain over the past four weeks.

U.S. Steel’s shares gained as Credit Suisse upgraded it to “Outperform” from “Underperform” with a price target of $35, saying that the steel sector is in a “super cycle”.

Price and Consensus

Price Consensus Chart for X
Price Consensus Chart for X

This steel maker is expected to post quarterly earnings of $2.57 per share in its upcoming report, which represents a year-over-year change of +196.3%. Revenues are expected to be $4.75 billion, up 127.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For U.S. Steel, the consensus EPS estimate for the quarter has been revised 17.2% 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 >>>>


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