Back to top

Image: Bigstock

Steel Dynamics (STLD) Stock Moves 0.65%: What You Should Know

Read MoreHide Full Article

Steel Dynamics (STLD - Free Report) ended the recent trading session at $118.80, demonstrating a +0.65% swing from the preceding day's closing price. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.23%.

The steel producer and metals recycler's stock has dropped by 11.4% in the past month, falling short of the Basic Materials sector's loss of 0.05% and the S&P 500's gain of 2.55%.

The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. It is anticipated that the company will report an EPS of $2.22, marking a 36.02% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.3 billion, indicating a 6.28% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.74 per share and revenue of $17.76 billion. These totals would mark changes of -28.16% and -5.53%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.42% lower within the past month. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).

In terms of valuation, Steel Dynamics is presently being traded at a Forward P/E ratio of 10.99. This represents a discount compared to its industry's average Forward P/E of 12.57.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 25% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Steel Dynamics, Inc. (STLD) - free report >>

Published in