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

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  • STLD

Steel Dynamics (STLD) closed the most recent trading day at $59.09, moving -1.19% from the previous trading session. This change lagged the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 1.34%, and the tech-heavy Nasdaq lost 0.92%.

Heading into today, shares of the steel producer and metals recycler had lost 4.69% over the past month, lagging the Basic Materials sector's loss of 2.05% and the S&P 500's loss of 0.73% in that time.

Investors will be hoping for strength from Steel Dynamics as it approaches its next earnings release. The company is expected to report EPS of $5.88, up 506.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5 billion, up 92.2% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.40 per share and revenue of $18.05 billion. These totals would mark changes of +477.46% and +87.96%, respectively, from last year.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Steel Dynamics is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 3.65. This represents a premium compared to its industry's average Forward P/E of 3.64.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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