United States Steel (X – Free Report) shares soared 9.5% in the last trading session to close at $33.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 24.2% loss over the past four weeks.
U.S. Steel’s stock popped on reports that Nippon Steel has proposed giving the U.S. government veto power over any potential reductions in U.S. Steel’s production capacity in an effort to secure President Joe Biden’s approval for its pending takeover of the Pennsylvania-based steelmaker.
This steel maker is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -104.5%. Revenues are expected to be $3.56 billion, down 14.2% 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 188.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate 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, Nucor (NUE – Free Report) , closed the last trading session 0.7% higher at $116.71. Over the past month, NUE has returned -25.9%.
For Nucor
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