Steel Dynamics (STLD) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Steel Dynamics (STLD) standing at $127.01, reflecting a +1.79% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.28%.
Heading into today, shares of the steel producer and metals recycler had gained 7.66% over the past month, outpacing the Basic Materials sector's gain of 1.21% and the S&P 500's gain of 5.01% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. The company is expected to report EPS of $3.48, down 13.22% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.61 billion, indicating a 5.89% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.13 per share and a revenue of $17.95 billion, signifying shifts of -25.55% and -4.51%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.13% increase. Steel Dynamics is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Steel Dynamics is presently trading at a Forward P/E ratio of 11.21. This represents a premium compared to its industry's average Forward P/E of 10.88.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
