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Schnitzer Steel (SCHN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Schnitzer Steel (SCHN - Free Report) closed at $47.39, marking a -0.21% move from the previous day. This change lagged the S&P 500's daily loss of 0.03%.

Prior to today's trading, shares of the recycler of ferrous and nonferrous scrap metal had lost 3.85% over the past month. This has lagged the Basic Materials sector's loss of 2.44% and the S&P 500's gain of 3.59% in that time.

Investors will be hoping for strength from SCHN as it approaches its next earnings release. On that day, SCHN is projected to report earnings of $1.58 per share, which would represent year-over-year growth of 586.96%. Meanwhile, our latest consensus estimate is calling for revenue of $790.05 million, up 70.05% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for SCHN. 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. 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 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 remained stagnant. SCHN currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note SCHN's current valuation metrics, including its Forward P/E ratio of 9.24. Its industry sports an average Forward P/E of 4.75, so we one might conclude that SCHN is trading at a premium comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.

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