Steel Dynamics (STLD) Ascends But Remains Behind Market: Some Facts to Note
In the latest market close, Steel Dynamics (STLD) reached $114.41, with a +0.64% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.37%.
The steel producer and metals recycler's stock has climbed by 4.13% in the past month, exceeding the Basic Materials sector's gain of 2.76% and lagging the S&P 500's gain of 4.39%.
Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. The company is expected to report EPS of $2.44, down 44.16% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.03 billion, indicating a 16.43% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.40 per share and revenue of $18.6 billion, which would represent changes of -36.51% and -16.47%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Steel Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Steel Dynamics possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Steel Dynamics is presently trading at a Forward P/E ratio of 7.89. For comparison, its industry has an average Forward P/E of 8.28, which means Steel Dynamics is trading at a discount to the group.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
