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

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Steel Dynamics (STLD - Free Report) closed the most recent trading day at $98.41, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 7.84%.

Prior to today's trading, shares of the steel producer and metals recycler had lost 3.89% over the past month. This has lagged the Basic Materials sector's loss of 0.18% and was narrower than the S&P 500's loss of 4.4% 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 $3.34 per share. This would mark a year-over-year decline of 42.21%. Meanwhile, our latest consensus estimate is calling for revenue of $4.73 billion, down 10.89% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.47 per share and revenue of $22.17 billion. These totals would mark changes of +33.44% and +20.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Steel Dynamics. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% lower. Steel Dynamics is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 4.65. For comparison, its industry has an average Forward P/E of 3.65, which means Steel Dynamics is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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 STLD in the coming trading sessions, be sure to utilize Zacks.com.


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