United States Steel (X) shares rallied 16.2% in the last trading session to close at $44.50. 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 5.7% gain over the past four weeks.

X’s shares rallied after the Trump administration ordered a new review of U.S. Steel’s combination with Nippon Steel to determine whether further action would be appropriate.
 

This steel maker is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of -142.7%. Revenues are expected to be $3.61 billion, down 13.2% 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 65.8% 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 >>>>

U.S. Steel is a member of the Zacks Steel - Producers industry. One other stock in the same industry, Ternium S.A. (TX), finished the last trading session 6% lower at $26.50. TX has returned -10.1% over the past month.

Ternium's consensus EPS estimate for the upcoming report has changed +23.7% over the past month to $0.43. Compared to the company's year-ago EPS, this represents a change of -76.6%. Ternium currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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