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Olympic Steel (ZEUS) Stock Sinks As Market Gains: What You Should Know

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Olympic Steel (ZEUS - Free Report) closed at $32.51 in the latest trading session, marking a -5.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.82%.

Heading into today, shares of the steel maker had gained 21.64% over the past month, outpacing the Basic Materials sector's gain of 8.18% and the S&P 500's gain of 2.31% in that time.

Wall Street will be looking for positivity from ZEUS as it approaches its next earnings report date. This is expected to be May 7, 2021. In that report, analysts expect ZEUS to post earnings of $1.30 per share. This would mark year-over-year growth of 6400%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $447.2 million, up 26.19% from the year-ago period.

ZEUS's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $1.78 billion. These results would represent year-over-year changes of +808.11% and +44.29%, respectively.

Investors should also note any recent changes to analyst estimates for ZEUS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ZEUS is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, ZEUS is holding a Forward P/E ratio of 13.15. This represents a premium compared to its industry's average Forward P/E of 8.33.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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