Steel Dynamics (STLD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Steel Dynamics (STLD) closed at $62.21, marking a -0.97% move from the previous day. This change lagged the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.
Prior to today's trading, shares of the steel producer and metals recycler had lost 0.21% over the past month. This has lagged the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 0.64% in that time.
Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. This is expected to be January 24, 2022. The company is expected to report EPS of $5.84, up 502.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.22 billion, up 100.86% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature of 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 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 moved 1.35% higher. Steel Dynamics is currently a Zacks Rank #3 (Hold).
Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 5.44. For comparison, its industry has an average Forward P/E of 5.7, 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 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.
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