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

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Olympic Steel (ZEUS - Free Report) closed at $29.58 in the latest trading session, marking a +1.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.02%.

Prior to today's trading, shares of the steel maker had gained 1.81% over the past month. This has lagged the Basic Materials sector's gain of 2.77% and the S&P 500's gain of 2.91% in that time.

Investors will be hoping for strength from ZEUS as it approaches its next earnings release, which is expected to be August 5, 2021. In that report, analysts expect ZEUS to post earnings of $2.01 per share. This would mark year-over-year growth of 628.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $516.4 million, up 107.97% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.76 per share and revenue of $2.01 billion. These totals would mark changes of +1116.22% and +62.96%, respectively, from last year.

Any recent changes to analyst estimates for ZEUS should also be noted by investors. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 21% higher. ZEUS is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, ZEUS is holding a Forward P/E ratio of 7.78. For comparison, its industry has an average Forward P/E of 5.84, which means ZEUS 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 gauges the strength of our individual 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.

To follow ZEUS in the coming trading sessions, be sure to utilize Zacks.com.


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