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Steel Dynamics (STLD - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a A for Value and a B for Growth. This steel producer has been super strong since early October back when the stock was $70. Recently, we have seen a pull back from highs that were above $113. Let’s explore more about this company in this Bull of The Day article.
Description
Based in Fort Wayne, IN, Steel Dynamics, Inc. is among the leading steel producers and metal recyclers in the United States. It currently has steelmaking and coating capacity of more than 11 million tons. It is one of the most diversified steel companies in United States with a vast range of specialty products. The company makes and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products in the United States and internationally.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For STLD, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 6.2%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for STLD.
This quarter has moved up from $3.34 to $3.78.
Next quarter has increased from $3.12 to $3.26.
The full fiscal year 2022 has increased from $20.95 to $21.89.
Next fiscal year has seen the estimate move from $7.86 to $9.49.
Positive movement in earnings help move this stock to a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is low even with the solid growth. I see a forward PE of 4.6x which is very low, but the company is coming off a quarter that saw topline growth of more than 11%. The price to book multiple is 2.3x. Price to sales comes in a 0.8x while the stock carries operating margins of roughly 20%.
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Bull Of The Day: Steel Dynamics (STLD)
Steel Dynamics (STLD - Free Report) is a Zacks Rank #1 (Strong Buy) and it sports a A for Value and a B for Growth. This steel producer has been super strong since early October back when the stock was $70. Recently, we have seen a pull back from highs that were above $113. Let’s explore more about this company in this Bull of The Day article.
Description
Based in Fort Wayne, IN, Steel Dynamics, Inc. is among the leading steel producers and metal recyclers in the United States. It currently has steelmaking and coating capacity of more than 11 million tons. It is one of the most diversified steel companies in United States with a vast range of specialty products. The company makes and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products in the United States and internationally.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For STLD, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 6.2%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved up for STLD.
This quarter has moved up from $3.34 to $3.78.
Next quarter has increased from $3.12 to $3.26.
The full fiscal year 2022 has increased from $20.95 to $21.89.
Next fiscal year has seen the estimate move from $7.86 to $9.49.
Positive movement in earnings help move this stock to a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for this name is low even with the solid growth. I see a forward PE of 4.6x which is very low, but the company is coming off a quarter that saw topline growth of more than 11%. The price to book multiple is 2.3x. Price to sales comes in a 0.8x while the stock carries operating margins of roughly 20%.