Steel Dynamics (STLD) Rises But Trails Market: What Investors Should Know
Steel Dynamics (STLD) closed the most recent trading day at $131.34, moving +1.09% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
Shares of the steel producer and metals recycler witnessed a gain of 4.93% over the previous month, trailing the performance of the Basic Materials sector with its gain of 5.41% and outperforming the S&P 500's gain of 2.06%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.48, reflecting a 13.22% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.61 billion, showing a 5.89% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $11.70 per share and a revenue of $17.95 billion, demonstrating changes of -21.74% and -4.51%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Steel Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.24% higher. Steel Dynamics is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 11.11. This represents a premium compared to its industry's average Forward P/E of 10.17.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 35% of all industries, numbering over 250.
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.
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
