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Steel Dynamics (STLD) Gains As Market Dips: What You Should Know

Steel Dynamics (STLD) closed the most recent trading day at $105.13, moving +1.15% from the previous trading session. This change outpaced the S&P 500's 0.09% loss on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the steel producer and metals recycler had gained 12.53% over the past month. This has lagged the Basic Materials sector's gain of 15.01% and outpaced the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. In that report, analysts expect Steel Dynamics to post earnings of $3.81 per share. This would mark a year-over-year decline of 34.08%. Our most recent consensus estimate is calling for quarterly revenue of $4.59 billion, down 13.63% from the year-ago period.

STLD's full-year Zacks Consensus Estimates are calling for earnings of $21.89 per share and revenue of $21.82 billion. These results would represent year-over-year changes of +36.05% and +18.54%, respectively.

It is also important to note the recent changes to analyst estimates for Steel Dynamics. These recent revisions tend to reflect the evolving nature of short-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. 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, 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 remained stagnant. Steel Dynamics currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 4.75. This valuation marks a premium compared to its industry's average Forward P/E of 3.99.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.

To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.

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