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Siderurgica Nacional (SID) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Siderurgica Nacional (SID - Free Report) closed at $6.41, marking a -0.16% move from the previous day. This change lagged the S&P 500's daily gain of 0.23%.

Coming into today, shares of the steelmaker had lost 20.94% in the past month. In that same time, the Basic Materials sector lost 4.58%, while the S&P 500 gained 0.65%.

Investors will be hoping for strength from SID as it approaches its next earnings release. On that day, SID is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 370.59%. Meanwhile, our latest consensus estimate is calling for revenue of $3.05 billion, up 88.09% from the prior-year quarter.

SID's full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $10.95 billion. These results would represent year-over-year changes of +431.67% and +88.75%, respectively.

Any recent changes to analyst estimates for SID should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 2.15% lower. SID is currently a Zacks Rank #3 (Hold).

In terms of valuation, SID is currently trading at a Forward P/E ratio of 2.02. Its industry sports an average Forward P/E of 4.63, so we one might conclude that SID is trading at a discount comparatively.

Also, we should mention that SID has a PEG ratio of 0.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Producers was holding an average PEG ratio of 0.2 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.

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