Steel Dynamics (STLD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Steel Dynamics (STLD) closed at $102.82, marking a -1.5% move from the previous day. This move lagged the S&P 500's daily loss of 1.47%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Coming into today, shares of the steel producer and metals recycler had gained 2.22% in the past month. In that same time, the Basic Materials sector gained 2.62%, while the S&P 500 lost 1.43%.
Investors will be hoping for strength from Steel Dynamics as it approaches its next earnings release. In that report, analysts expect Steel Dynamics to post earnings of $3.82 per share. This would mark a year-over-year decline of 30.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.78 billion, down 15.36% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.25 per share and revenue of $19.03 billion, which would represent changes of -32.76% and -14.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 1.61% lower. Steel Dynamics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 6.85. For comparison, its industry has an average Forward P/E of 8.11, 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 98, which puts it in the top 39% 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.
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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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
