Schnitzer Steel (SCHN) Gains As Market Dips: What You Should Know
Schnitzer Steel (SCHN) closed at $32.94 in the latest trading session, marking a +0.15% move from the prior day. This move outpaced the S&P 500's daily loss of 1.45%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 3.06%.
Heading into today, shares of the recycler of ferrous and nonferrous scrap metal had gained 6.89% over the past month, outpacing the Basic Materials sector's loss of 2.83% and the S&P 500's loss of 3.83% in that time.
Schnitzer Steel will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $674.4 million, down 13.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.88 per share and revenue of $2.74 billion, which would represent changes of -85.5% and -21.42%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Schnitzer Steel. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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 remained stagnant within the past month. Schnitzer Steel is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Schnitzer Steel is holding a Forward P/E ratio of 37.38. Its industry sports an average Forward P/E of 10.25, so we one might conclude that Schnitzer Steel is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schnitzer Steel Industries, Inc. (SCHN) : Free Stock Analysis Report
