Back to top

Image: Bigstock

Steel Dynamics (STLD) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Steel Dynamics (STLD - Free Report) closed the most recent trading day at $67.04, moving -0.67% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day.

Coming into today, shares of the steel producer and metals recycler had gained 4.39% in the past month. In that same time, the Basic Materials sector lost 3.29%, while the S&P 500 gained 3.02%.

Investors will be hoping for strength from STLD as it approaches its next earnings release. The company is expected to report EPS of $4.29, up 741.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 110.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.20 per share and revenue of $17.78 billion. These totals would mark changes of +400% and +85.21%, respectively, from last year.

Any recent changes to analyst estimates for STLD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 9.86% higher. STLD is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, STLD is holding a Forward P/E ratio of 4.75. Its industry sports an average Forward P/E of 4.75, so we one might conclude that STLD is trading at a no noticeable deviation comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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 STLD in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

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

Steel Dynamics, Inc. (STLD) - free report >>

Published in