TimkenSteel (TMST) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, TimkenSteel (TMST) closed at $18.45, marking a -0.27% move from the previous day. This move lagged the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.
Prior to today's trading, shares of the maker of steel large bars and seamless mechanical tubing had lost 3.8% over the past month. This has was narrower than the Basic Materials sector's loss of 10.26% and lagged the S&P 500's gain of 7.91% 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 $1.31, up 36.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for TimkenSteel. These recent revisions tend to reflect the evolving nature of short-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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TimkenSteel is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TimkenSteel is holding a Forward P/E ratio of 4.46. This represents a premium compared to its industry's average Forward P/E of 2.91.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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