Steel Dynamics (STLD) Outperforms Broader Market: What You Need to Know
Steel Dynamics (STLD) closed at $123.32 in the latest trading session, marking a +0.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Prior to today's trading, shares of the steel producer and metals recycler had gained 9.18% over the past month. This has outpaced the Basic Materials sector's gain of 6.6% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of Steel Dynamics in its forthcoming earnings report. The company is scheduled to release its earnings on January 23, 2024. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 45.31% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.04 billion, down 16.34% from the year-ago period.
STLD's full-year Zacks Consensus Estimates are calling for earnings of $14.40 per share and revenue of $18.6 billion. These results would represent year-over-year changes of -36.51% and -16.45%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. Steel Dynamics currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 8.48. This indicates a discount in contrast to its industry's Forward P/E of 9.7.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank is ordered 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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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
