We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Earnings Estimates Moving Higher for Steel Dynamics (STLD): Time to Buy?
Read MoreHide Full Article
Investors might want to bet on Steel Dynamics (STLD - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this steel producer and metals recycler, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Steel Dynamics, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $2.20 per share, which is a change of +150% from the year-ago reported number.
Over the last 30 days, four estimates have moved higher for Steel Dynamics compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 30.33%.
Current-Year Estimate Revisions
The company is expected to earn $6.25 per share for the full year, which represents a change of +120.07% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Steel Dynamics versus no negative revisions. This has pushed the consensus estimate 57.65% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Steel Dynamics currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Steel Dynamics have attracted decent investments and pushed the stock 17.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Earnings Estimates Moving Higher for Steel Dynamics (STLD): Time to Buy?
Investors might want to bet on Steel Dynamics (STLD - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this steel producer and metals recycler, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Steel Dynamics, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $2.20 per share, which is a change of +150% from the year-ago reported number.
Over the last 30 days, four estimates have moved higher for Steel Dynamics compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 30.33%.
Current-Year Estimate Revisions
The company is expected to earn $6.25 per share for the full year, which represents a change of +120.07% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Steel Dynamics versus no negative revisions. This has pushed the consensus estimate 57.65% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, Steel Dynamics currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Steel Dynamics have attracted decent investments and pushed the stock 17.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.