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Steel Dynamics (STLD) Dips More Than Broader Markets: What You Should Know

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Steel Dynamics (STLD - Free Report) closed at $65.86 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day.

Coming into today, shares of the steel producer and metals recycler had lost 2.67% in the past month. In that same time, the Basic Materials sector lost 1.94%, while the S&P 500 gained 2.07%.

Wall Street will be looking for positivity from STLD as it approaches its next earnings report date. On that day, STLD is projected to report earnings of $4.29 per share, which would represent year-over-year growth of 741.18%. Our most recent consensus estimate is calling for quarterly revenue of $4.91 billion, up 110.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.20 per share and revenue of $17.78 billion, which would represent changes of +400% and +85.21%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for STLD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 9.86% higher within the past month. STLD currently has a Zacks Rank of #3 (Hold).

In terms of valuation, STLD is currently trading at a Forward P/E ratio of 4.68. Its industry sports an average Forward P/E of 4.68, 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 21, putting it in the top 9% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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