Steel Dynamics (STLD) Stock Jumps 3.2%: Will It Continue to Soar?
Steel Dynamics (STLD) shares soared 3.2% in the last trading session to close at $119.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.
STLD’s rally appears to be driven by the optimism over improving U.S. steel prices. The benchmark hot-rolled coil prices are heading higher of late driven by steel mills’ price hike actions, higher demand and tighter supply.
This steel producer and metals recycler is expected to post quarterly earnings of $2.44 per share in its upcoming report, which represents a year-over-year change of -44.2%. Revenues are expected to be $4.03 billion, down 16.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Steel Dynamics, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on STLD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Steel Dynamics is part of the Zacks Steel - Producers industry. Commercial Metals (CMC), another stock in the same industry, closed the last trading session 1% higher at $45.33. CMC has returned 3.4% in the past month.
Commercial Metals' consensus EPS estimate for the upcoming report has changed -0.9% over the past month to $1.52. Compared to the company's year-ago EPS, this represents a change of -32.1%. Commercial Metals currently boasts a Zacks Rank of #3 (Hold).
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
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