U.S. Steel Moves 7.0% Higher: Will This Strength Last?

United States Steel X shares rallied 7% in the last trading session to close at $33.39. 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 25.5% loss over the past four weeks.

U.S. Steel's stock popped on reports that a senior Nippon Steel executive traveled to Washington to meet with U.S. officials in a last-ditch effort to save Nippon Steel's proposed $14.9 billion takeover of U.S. Steel following reports a week ago that the Biden administration was preparing to block the deal.

This steel maker is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -73.6%. Revenues are expected to be $3.77 billion, down 14.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For U.S. Steel, the consensus EPS estimate for the quarter has been revised 26.1% 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).

U.S. Steel is a member of the Zacks Steel - Producers industry. One other stock in the same industry, Commercial Metals CMC, finished the last trading session 1% lower at $48.67. CMC has returned -8.3% over the past month.

Commercial Metals' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.14. Compared to the company's year-ago EPS, this represents a change of -32.5%. Commercial Metals currently boasts a Zacks Rank of #3 (Hold).

To read this article on Zacks.com click here.