Steel Dynamics (STLD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Steel Dynamics (STLD) closed at $75.85, marking a -1.74% move from the previous day. This change lagged the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Heading into today, shares of the steel producer and metals recycler had lost 3.81% over the past month, lagging the Basic Materials sector's loss of 3.12% and outpacing the S&P 500's loss of 7.59% in that time.
Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. The company is expected to report EPS of $4.86, down 2.02% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.48 billion, up 7.62% from the year-ago period.
STLD's full-year Zacks Consensus Estimates are calling for earnings of $21.33 per share and revenue of $21.86 billion. These results would represent year-over-year changes of +32.57% and +18.74%, respectively.
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. 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. Within the past 30 days, our consensus EPS projection has moved 1.23% higher. Steel Dynamics is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 3.62. For comparison, its industry has an average Forward P/E of 2.8, which means Steel Dynamics is trading at a premium to the group.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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