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

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Siderurgica Nacional (SID - Free Report) closed the most recent trading day at $5.14, moving +0.59% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%.

Prior to today's trading, shares of the steelmaker had lost 24.18% over the past month. This has lagged the Basic Materials sector's loss of 7.91% and the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from SID as it approaches its next earnings report date. On that day, SID is projected to report earnings of $0.61 per share, which would represent year-over-year growth of 258.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 83.38% from the year-ago period.

SID's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $10.7 billion. These results would represent year-over-year changes of +338.33% and +84.4%, respectively.

Any recent changes to analyst estimates for SID should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 17.58% lower. SID is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that SID has a Forward P/E ratio of 1.95 right now. This valuation marks a discount compared to its industry's average Forward P/E of 4.14.

Investors should also note that SID has a PEG ratio of 0.1 right now. 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. SID's industry had an average PEG ratio of 0.17 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 17% 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.

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