Steel Dynamics (STLD) Gains But Lags Market: What You Should Know
In the latest trading session, Steel Dynamics (STLD) closed at $60.97, marking a +0.63% move from the previous day. The stock lagged the S&P 500's daily gain of 0.92%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.
Prior to today's trading, shares of the steel producer and metals recycler had gained 1.32% over the past month. This has lagged the Basic Materials sector's gain of 3.29% and outpaced the S&P 500's loss of 0.85% in that time.
Steel Dynamics will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2022. On that day, Steel Dynamics is projected to report earnings of $5.84 per share, which would represent year-over-year growth of 502.06%. Our most recent consensus estimate is calling for quarterly revenue of $5.22 billion, up 100.86% from the year-ago period.
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 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.53% higher. Steel Dynamics is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 5.3. This represents a no noticeable deviation compared to its industry's average Forward P/E of 5.3.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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