TimkenSteel (TMST) Stock Sinks As Market Gains: What You Should Know
TimkenSteel (TMST) closed at $21.26 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the maker of steel large bars and seamless mechanical tubing had lost 9.3% in the past month. In that same time, the Basic Materials sector lost 4.62%, while the S&P 500 lost 5.26%.
TimkenSteel will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. The company is expected to report EPS of $0.81, up 88.37% 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 $3.80 per share and revenue of $1.38 billion, which would represent changes of +18.38% 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 7.04% higher within the past month. TimkenSteel currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that TimkenSteel has a Forward P/E ratio of 5.7 right now. This valuation marks a premium compared to its industry's average Forward P/E of 3.87.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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