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Steel Dynamics (STLD) closed the most recent trading day at $83.97, moving -1.65% from the previous trading session. This change lagged the S&P 500's 0.75% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq added 0.24%.
Heading into today, shares of the steel producer and metals recycler had lost 1.13% over the past month, lagging the Basic Materials sector's gain of 1.48% and the S&P 500's gain of 0.32% in that time.
Investors will be hoping for strength from Steel Dynamics as it approaches its next earnings release. On that day, Steel Dynamics is projected to report earnings of $5.08 per share, which would represent year-over-year growth of 49.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.62 billion, up 25.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.52 per share and revenue of $21.63 billion. These totals would mark changes of +33.75% and +17.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Steel Dynamics. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.82% higher. 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 3.97 right now. This represents a premium compared to its industry's average Forward P/E of 3.49.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
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