Steel Dynamics (STLD) Stock Moves -0.75%: What You Should Know
Steel Dynamics (STLD) closed at $130.99 in the latest trading session, marking a -0.75% move from the prior day. This change was narrower than the S&P 500's 1.53% loss on the day. At the same time, the Dow lost 1.72%, and the tech-heavy Nasdaq lost 3.27%.
Prior to today's trading, shares of the steel producer and metals recycler had gained 6.86% over the past month. This has outpaced the Basic Materials sector's loss of 0.06% and the S&P 500's loss of 1.28% in that time.
Investors will be hoping for strength from Steel Dynamics as it approaches its next earnings release. On that day, Steel Dynamics is projected to report earnings of $3.26 per share, which would represent a year-over-year decline of 45.85%. Our most recent consensus estimate is calling for quarterly revenue of $4.73 billion, down 15.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13 per share and revenue of $18.29 billion, which would represent changes of -42.68% and -17.82%, respectively, from the prior year.
It is also important to note the recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate has moved 11.94% higher. Steel Dynamics currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 10.82, which means Steel Dynamics is trading at a discount to the group.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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
