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Steel Dynamics (STLD) Soars 5.3%: Is Further Upside Left in the Stock?
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Steel Dynamics (STLD - Free Report) shares rallied 5.3% in the last trading session to close at $54.66. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.2% gain over the past four weeks.
STLD’s shares are heading higher following its forecast-topping first-quarter 2021 results. Its adjusted earnings per share of $2.10 for the first quarter topped the Zacks Consensus Estimate of $1.98. Net sales climbed around 38% year over year to $3,544.6 million and surpassed the Zacks Consensus Estimate of $3,275.8 million. The company achieved record quarterly net sales, operating income and adjusted EBITDA, despite pandemic-led challenges.
The company also provided an upbeat outlook. It forecasts that earnings for the second quarter will be higher than first-quarter levels. The company is optimistic regarding the steel market dynamics in North America. It is witnessing strong steel demand and significantly low customer steel inventory throughout the supply chain.
Price and Consensus
This steel producer and metals recycler is expected to post quarterly earnings of $2.52 per share in its upcoming report, which represents a year-over-year change of +436.2%. Revenues are expected to be $3.76 billion, up 79.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Steel Dynamics, the consensus EPS estimate for the quarter has been revised 30% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on STLD going forward to see if this recent jump can turn into more strength down the road.
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Steel Dynamics (STLD) Soars 5.3%: Is Further Upside Left in the Stock?
Steel Dynamics (STLD - Free Report) shares rallied 5.3% in the last trading session to close at $54.66. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.2% gain over the past four weeks.
STLD’s shares are heading higher following its forecast-topping first-quarter 2021 results. Its adjusted earnings per share of $2.10 for the first quarter topped the Zacks Consensus Estimate of $1.98. Net sales climbed around 38% year over year to $3,544.6 million and surpassed the Zacks Consensus Estimate of $3,275.8 million. The company achieved record quarterly net sales, operating income and adjusted EBITDA, despite pandemic-led challenges.
The company also provided an upbeat outlook. It forecasts that earnings for the second quarter will be higher than first-quarter levels. The company is optimistic regarding the steel market dynamics in North America. It is witnessing strong steel demand and significantly low customer steel inventory throughout the supply chain.
Price and Consensus
This steel producer and metals recycler is expected to post quarterly earnings of $2.52 per share in its upcoming report, which represents a year-over-year change of +436.2%. Revenues are expected to be $3.76 billion, up 79.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Steel Dynamics, the consensus EPS estimate for the quarter has been revised 30% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on STLD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>