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TimkenSteel (TMST) Dips More Than Broader Markets: What You Should Know

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TimkenSteel (TMST - Free Report) closed the most recent trading day at $13, moving -1.89% from the previous trading session. This change lagged the S&P 500's daily loss of 0.47%.

Heading into today, shares of the maker of steel large bars and seamless mechanical tubing had lost 4.81% over the past month, lagging the Basic Materials sector's gain of 3.58% and the S&P 500's gain of 3.38% in that time.

Wall Street will be looking for positivity from TMST as it approaches its next earnings report date. This is expected to be August 5, 2021. The company is expected to report EPS of $0.62, up 300% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $326.4 million, up 111.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.93 per share and revenue of $1.21 billion, which would represent changes of +307.53% and +45.13%, respectively, from the prior year.

Any recent changes to analyst estimates for TMST should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 2.67% higher. TMST is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, TMST is holding a Forward P/E ratio of 6.88. For comparison, its industry has an average Forward P/E of 6.01, which means TMST is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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