Schnitzer Steel (SCHN) Gains As Market Dips: What You Should Know
Schnitzer Steel (SCHN) closed at $32.90 in the latest trading session, marking a +1.76% move from the prior day. This move outpaced the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the recycler of ferrous and nonferrous scrap metal had lost 5.99% over the past month, lagging the Basic Materials sector's loss of 1.94% and the S&P 500's gain of 3.6% in that time.
Investors will be hoping for strength from Schnitzer Steel as it approaches 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.
SCHN's full-year Zacks Consensus Estimates are calling for earnings of $0.88 per share and revenue of $2.74 billion. These results would represent year-over-year changes of -85.5% and -21.42%, respectively.
It is also important to note the recent changes to analyst estimates for Schnitzer Steel. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.38% lower within the past month. Schnitzer Steel is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Schnitzer Steel is currently trading at a Forward P/E ratio of 36.74. This represents a premium compared to its industry's average Forward P/E of 10.66.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Schnitzer Steel Industries, Inc. (SCHN) : Free Stock Analysis Report
