Steel Dynamics (STLD) Rises As Market Takes a Dip: Key Facts
Steel Dynamics (STLD) ended the recent trading session at $118.91, demonstrating a +0.69% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.57% loss on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
The steel producer and metals recycler's stock has dropped by 0.56% in the past month, falling short of the Basic Materials sector's gain of 4.35% and the S&P 500's gain of 4%.
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 is expected to report EPS of $2.45, down 43.94% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.06 billion, indicating a 15.91% decrease compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.48% upward. Steel Dynamics is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 11.26. This denotes a premium relative to the industry's average Forward P/E of 9.78.
The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
