Steel Dynamics (STLD) Advances But Underperforms Market: Key Facts
Steel Dynamics (STLD) closed at $117.04 in the latest trading session, marking a +0.71% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.41%. On the other hand, the Dow registered a gain of 0.58%, and the technology-centric Nasdaq increased by 2.2%.
The steel producer and metals recycler's shares have seen an increase of 2.7% over the last month, not keeping up with the Basic Materials sector's gain of 5.33% and the S&P 500's gain of 2.9%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 23, 2024. The company's upcoming EPS is projected at $2.45, signifying a 43.94% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.06 billion, indicating a 15.91% downward movement from the same quarter last year.
Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 2.81% higher. At present, Steel Dynamics boasts a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 11.08. This expresses a premium compared to the average Forward P/E of 9.4 of its industry.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
