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.
Steel Dynamics (STLD) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Steel Dynamics (STLD - Free Report) closed at $64.22 in the latest trading session, marking a +0.74% move from the prior day. This change outpaced the S&P 500's 0.36% loss on the day.
Prior to today's trading, shares of the steel producer and metals recycler had gained 6.32% over the past month. This has lagged the Basic Materials sector's gain of 8.34% and outpaced the S&P 500's gain of 0.75% in that time.
Wall Street will be looking for positivity from STLD as it approaches its next earnings report date. On that day, STLD is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 455.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.1 billion, up 95.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.41 per share and revenue of $14.51 billion. These totals would mark changes of +196.13% and +51.11%, respectively, from last year.
Any recent changes to analyst estimates for STLD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 3.27% higher within the past month. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note STLD's current valuation metrics, including its Forward P/E ratio of 7.58. Its industry sports an average Forward P/E of 7.26, so we one might conclude that STLD is trading at a premium comparatively.
We can also see that STLD currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.54 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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.
To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Steel Dynamics (STLD) Gains As Market Dips: What You Should Know
Steel Dynamics (STLD - Free Report) closed at $64.22 in the latest trading session, marking a +0.74% move from the prior day. This change outpaced the S&P 500's 0.36% loss on the day.
Prior to today's trading, shares of the steel producer and metals recycler had gained 6.32% over the past month. This has lagged the Basic Materials sector's gain of 8.34% and outpaced the S&P 500's gain of 0.75% in that time.
Wall Street will be looking for positivity from STLD as it approaches its next earnings report date. On that day, STLD is projected to report earnings of $2.61 per share, which would represent year-over-year growth of 455.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.1 billion, up 95.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.41 per share and revenue of $14.51 billion. These totals would mark changes of +196.13% and +51.11%, respectively, from last year.
Any recent changes to analyst estimates for STLD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 3.27% higher within the past month. STLD is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note STLD's current valuation metrics, including its Forward P/E ratio of 7.58. Its industry sports an average Forward P/E of 7.26, so we one might conclude that STLD is trading at a premium comparatively.
We can also see that STLD currently has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.54 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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.
To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.