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Steel Dynamics (STLD) Gains As Market Dips: What You Should Know

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Steel Dynamics (STLD - Free Report) closed at $79.36 in the latest trading session, marking a +1.82% move from the prior day. This change outpaced the S&P 500's 0.41% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the steel producer and metals recycler had lost 1.03% over the past month. This has was narrower than the Basic Materials sector's loss of 2.65% and the S&P 500's loss of 5.13% in that time.

Steel Dynamics will be looking to display strength as it nears its next earnings release. In that report, analysts expect Steel Dynamics to post earnings of $4.86 per share. This would mark a year-over-year decline of 2.02%. Meanwhile, our latest consensus estimate is calling for revenue of $5.48 billion, up 7.62% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $21.33 per share and revenue of $21.86 billion, which would represent changes of +32.57% and +18.74%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Steel Dynamics. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.23% higher. Steel Dynamics is currently a Zacks Rank #3 (Hold).

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 3.65. This valuation marks a premium compared to its industry's average Forward P/E of 2.87.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 25% 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.

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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