Steel Dynamics (STLD) Dips More Than Broader Markets: What You Should Know
Steel Dynamics (STLD) closed at $104.46 in the latest trading session, marking a -0.7% move from the prior day. This change lagged the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Heading into today, shares of the steel producer and metals recycler had lost 1.01% over the past month, lagging the Basic Materials sector's gain of 5.98% and the S&P 500's gain of 7.71% in that time.
Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. This is expected to be April 19, 2023. In that report, analysts expect Steel Dynamics to post earnings of $3.81 per share. This would mark a year-over-year decline of 36.71%. Meanwhile, our latest consensus estimate is calling for revenue of $4.93 billion, down 11.48% from the prior-year quarter.
STLD's full-year Zacks Consensus Estimates are calling for earnings of $15.85 per share and revenue of $19.74 billion. These results would represent year-over-year changes of -30.11% and -11.32%, respectively.
Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 15.83% higher within the past month. Steel Dynamics is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Steel Dynamics has a Forward P/E ratio of 6.64 right now. For comparison, its industry has an average Forward P/E of 7.74, which means Steel Dynamics is trading at a discount to the group.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
