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Schnitzer Steel (SCHN) Gains But Lags Market: What You Should Know

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Schnitzer Steel (SCHN - Free Report) closed at $54.51 in the latest trading session, marking a +1.36% move from the prior day. This change lagged the S&P 500's 1.49% gain on the day.

Coming into today, shares of the recycler of ferrous and nonferrous scrap metal had gained 32.95% in the past month. In that same time, the Basic Materials sector gained 10.21%, while the S&P 500 lost 0.62%.

Investors will be hoping for strength from SCHN as it approaches its next earnings release. In that report, analysts expect SCHN to post earnings of $1.82 per share. This would mark year-over-year growth of 3540%. Our most recent consensus estimate is calling for quarterly revenue of $734.5 million, up 82.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $2.51 billion. These totals would mark changes of +1027.91% and +46.31%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SCHN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SCHN is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, SCHN currently has a Forward P/E ratio of 11.09. This represents a premium compared to its industry's average Forward P/E of 8.49.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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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