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Steel Dynamics (STLD) Wraps Up Stake Buy in New Process Steel
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Steel Dynamics, Inc. (STLD - Free Report) completed the acquisition of a minority equity interest in New Process Steel, L.P. The latter is a metals solutions and distribution supply-chain management company headquartered in Houston, TX. It is focused on growing its value-added production applications.
New Process Steel has two manufacturing locations in Mexico and four manufacturing locations in the United States, two of which are at Steel Dynamics' Butler and Columbus Flat Roll Steel divisions. The current CEO of the company, Richard Fant, will independently operate New Process as the majority 55% equity holder and decision maker. New Process Steel is presently Steel Dynamics' single largest flat roll steel customer.
Steel Dynamics stated that the minority equity interest facilitates it to scale up its exposure to value-added manufacturing opportunities, while continuing to serve other long-standing flat roll steel customer requests. It expects that the current leadership team of New Process Steel will maintain the high-quality standards that have been set by it and continue to drive manufacturing growth. Steel Dynamics' focuses on offering the highest quality steel and service to all of its customers and creating innovative supply-chain solutions.
Shares of Steel Dynamics have gained 57.1% in the past year compared with a 30.2% rise of the industry.
Image Source: Zacks Investment Research
Steel Dynamics, in its fourth-quarter call, stated that it expects a further year-over-year increase in domestic steel consumption in 2022 based on the prevailing market dynamics. It sees steel consumption in North America to experience steady growth, backed by the construction, automotive, and industrial sectors. STLD expects construction to remain strong, factoring in its record steel fabrication order backlog extending through most of this year along with the sustained strength of order activity and broad customer optimism.
Steel Dynamics also expects the more severe supply-chain challenges in the automotive sector in North America to subside this year, supporting stronger production for vehicles that are in high demand and short supply.
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 30.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 53.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17.4% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 37.6% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 81.6% over a year. The company sports a Zacks Rank #1.
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Steel Dynamics (STLD) Wraps Up Stake Buy in New Process Steel
Steel Dynamics, Inc. (STLD - Free Report) completed the acquisition of a minority equity interest in New Process Steel, L.P. The latter is a metals solutions and distribution supply-chain management company headquartered in Houston, TX. It is focused on growing its value-added production applications.
New Process Steel has two manufacturing locations in Mexico and four manufacturing locations in the United States, two of which are at Steel Dynamics' Butler and Columbus Flat Roll Steel divisions. The current CEO of the company, Richard Fant, will independently operate New Process as the majority 55% equity holder and decision maker. New Process Steel is presently Steel Dynamics' single largest flat roll steel customer.
Steel Dynamics stated that the minority equity interest facilitates it to scale up its exposure to value-added manufacturing opportunities, while continuing to serve other long-standing flat roll steel customer requests. It expects that the current leadership team of New Process Steel will maintain the high-quality standards that have been set by it and continue to drive manufacturing growth. Steel Dynamics' focuses on offering the highest quality steel and service to all of its customers and creating innovative supply-chain solutions.
Shares of Steel Dynamics have gained 57.1% in the past year compared with a 30.2% rise of the industry.
Steel Dynamics, in its fourth-quarter call, stated that it expects a further year-over-year increase in domestic steel consumption in 2022 based on the prevailing market dynamics. It sees steel consumption in North America to experience steady growth, backed by the construction, automotive, and industrial sectors. STLD expects construction to remain strong, factoring in its record steel fabrication order backlog extending through most of this year along with the sustained strength of order activity and broad customer optimism.
Steel Dynamics also expects the more severe supply-chain challenges in the automotive sector in North America to subside this year, supporting stronger production for vehicles that are in high demand and short supply.
Steel Dynamics, Inc. Price and Consensus
Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote
Zacks Rank & Key Picks
Steel Dynamics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 51.3% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 5.4% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 30.4% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 53.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 17.4% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 37.6% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 81.6% over a year. The company sports a Zacks Rank #1.