TimkenSteel (TMST) Gains As Market Dips: What You Should Know
TimkenSteel (TMST) closed the most recent trading day at $24.44, moving +0.45% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow gained 0.72%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the maker of steel large bars and seamless mechanical tubing had gained 6.95% over the past month, outpacing the Basic Materials sector's gain of 5.04% and the S&P 500's gain of 0.17% in that time.
TimkenSteel will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.80, up 86.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $338.4 million, up 23.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $1.38 billion, which would represent changes of +10.59% and +7.27%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TimkenSteel. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. TimkenSteel currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, TimkenSteel is holding a Forward P/E ratio of 6.85. This represents a premium compared to its industry's average Forward P/E of 4.68.
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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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