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Steel Dynamics (STLD) Dips More Than Broader Markets: What You Should Know

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Steel Dynamics (STLD) closed at $62.21 in the latest trading session, marking a -1.54% move from the prior day. This change lagged the S&P 500's 0.54% loss on the day.

Coming into today, shares of the steel producer and metals recycler had lost 0.17% in the past month. In that same time, the Basic Materials sector lost 2.3%, while the S&P 500 gained 1.91%.

STLD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.16, up 572.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, up 95.87% from the year-ago period.

STLD's full-year Zacks Consensus Estimates are calling for earnings of $9.87 per share and revenue of $14.97 billion. These results would represent year-over-year changes of +247.54% and +55.94%, respectively.

Investors might also notice recent changes to analyst estimates for STLD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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 8.34% higher. STLD is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, STLD is currently trading at a Forward P/E ratio of 6.4. This valuation marks a discount compared to its industry's average Forward P/E of 7.82.

Also, we should mention that STLD has a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STLD's industry had an average PEG ratio of 0.46 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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