Back to top

Image: Bigstock

Schnitzer Steel (SCHN) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Schnitzer Steel (SCHN - Free Report) closed the most recent trading day at $57.47, moving +0.4% from the previous trading session. This change outpaced the S&P 500's 0.36% loss on the day.

Heading into today, shares of the recycler of ferrous and nonferrous scrap metal had gained 6.18% over the past month, lagging the Basic Materials sector's gain of 8.34% and outpacing the S&P 500's gain of 0.75% in that time.

SCHN will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $5.35 per share and revenue of $2.51 billion. These totals would mark changes of +1144.19% and +46.31%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SCHN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 10.31% higher. SCHN currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, SCHN is currently trading at a Forward P/E ratio of 10.7. This represents a premium compared to its industry's average Forward P/E of 7.26.

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 gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Schnitzer Steel Industries, Inc. (SCHN) - free report >>

Published in