Steel Dynamics (STLD) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Steel Dynamics (STLD) standing at $115.36, reflecting a +1.38% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.37%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 1.38%.
Shares of the steel producer and metals recycler have appreciated by 2.74% over the course of the past month, underperforming the Basic Materials sector's gain of 5.69% and the S&P 500's gain of 5.37%.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 44.16% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.03 billion, down 16.43% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.40 per share and a revenue of $18.6 billion, representing changes of -36.51% and -16.47%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Steel Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Steel Dynamics is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Steel Dynamics has a Forward P/E ratio of 7.9 right now. This denotes a discount relative to the industry's average Forward P/E of 8.4.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
