Steel Dynamics (STLD) Rises Higher Than Market: Key Facts
Steel Dynamics (STLD) closed the most recent trading day at $129.96, moving +1.14% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.51% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.58%.
Shares of the steel producer and metals recycler have appreciated by 6.93% over the course of the past month, outperforming the Basic Materials sector's gain of 4.25% and the S&P 500's gain of 2.94%.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. In that report, analysts expect Steel Dynamics to post earnings of $3.48 per share. This would mark a year-over-year decline of 13.22%. At the same time, our most recent consensus estimate is projecting a revenue of $4.61 billion, reflecting a 5.89% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.70 per share and revenue of $17.95 billion, which would represent changes of -21.74% and -4.51%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.24% higher. Steel Dynamics presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Steel Dynamics has a Forward P/E ratio of 10.99 right now. This expresses a premium compared to the average Forward P/E of 10.67 of its industry.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
