Steel Dynamics (STLD) Surpasses Market Returns: Some Facts Worth Knowing
In the latest market close, Steel Dynamics (STLD) reached $139.97, with a +1.5% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.63%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.82%.
The the stock of steel producer and metals recycler has risen by 11.81% in the past month, leading the Basic Materials sector's gain of 5.32% and the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. In that report, analysts expect Steel Dynamics to post earnings of $3.42 per share. This would mark a year-over-year decline of 14.71%. Simultaneously, our latest consensus estimate expects the revenue to be $4.58 billion, showing a 6.36% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.46 per share and a revenue of $17.78 billion, signifying shifts of -23.34% and -5.38%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has shifted 0.57% downward. At present, Steel Dynamics boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Steel Dynamics is currently exchanging hands at a Forward P/E ratio of 12.04. Its industry sports an average Forward P/E of 10.27, so one might conclude that Steel Dynamics is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
