TimkenSteel (TMST) closed at $19.36 in the latest trading session, marking a -0.36% move from the prior day. This change lagged the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Heading into today, shares of the maker of steel large bars and seamless mechanical tubing had lost 9.63% over the past month, lagging the Basic Materials sector's loss of 6.58% and the S&P 500's loss of 8.32% in that time.
Wall Street will be looking for positivity from TimkenSteel as it approaches its next earnings report date. The company is expected to report EPS of $1.31, up 36.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $411.35 million, up 25.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $1.52 billion. These totals would mark changes of +29.28% and +18.55%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TimkenSteel. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant. TimkenSteel is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, TimkenSteel is currently trading at a Forward P/E ratio of 4.68. Its industry sports an average Forward P/E of 2.99, so we one might conclude that TimkenSteel is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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 TMST in the coming trading sessions, be sure to utilize Zacks.com.