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Siderurgica Nacional (SID) Dips More Than Broader Markets: What You Should Know

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Siderurgica Nacional (SID - Free Report) closed the most recent trading day at $2.60, moving -1.52% from the previous trading session. This change lagged the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.62%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the steelmaker had lost 26.05% over the past month, lagging the Basic Materials sector's loss of 22.01% and the S&P 500's loss of 1% in that time.

Wall Street will be looking for positivity from Siderurgica Nacional as it approaches its next earnings report date. The company is expected to report EPS of $0.15, down 80% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 2.35% from the prior-year quarter.

SID's full-year Zacks Consensus Estimates are calling for earnings of $0.87 per share and revenue of $11.43 billion. These results would represent year-over-year changes of -52.2% and +28.42%, respectively.

Any recent changes to analyst estimates for Siderurgica Nacional should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 16.35% lower within the past month. Siderurgica Nacional is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Siderurgica Nacional currently has a Forward P/E ratio of 3.03. This valuation marks a premium compared to its industry's average Forward P/E of 2.66.

We can also see that SID currently has a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Producers industry currently had an average PEG ratio of 0.14 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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