Schnitzer Steel (SCHN) Outpaces Stock Market Gains: What You Should Know
Schnitzer Steel (SCHN) closed the most recent trading day at $28.96, moving +1.51% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Coming into today, shares of the recycler of ferrous and nonferrous scrap metal had lost 15.74% in the past month. In that same time, the Basic Materials sector lost 6%, while the S&P 500 lost 3.9%.
Wall Street will be looking for positivity from Schnitzer Steel as it approaches its next earnings report date.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.95 per share and revenue of $2.86 billion. These totals would mark changes of -84.35% and -18.04%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Schnitzer Steel. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 7.95% higher. Schnitzer Steel is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Schnitzer Steel currently has a Forward P/E ratio of 30.03. For comparison, its industry has an average Forward P/E of 8.78, which means Schnitzer Steel is trading at a premium to the group.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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
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