Back to top

Image: Bigstock

Siderurgica Nacional (SID) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Siderurgica Nacional (SID - Free Report) closed the most recent trading day at $4.08, moving -0.97% from the previous trading session. This change lagged the S&P 500's 0.85% loss on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the steelmaker had gained 7.85% in the past month. In that same time, the Basic Materials sector lost 1.7%, while the S&P 500 lost 0.97%.

Wall Street will be looking for positivity from Siderurgica Nacional as it approaches its next earnings report date. In that report, analysts expect Siderurgica Nacional to post earnings of $0.27 per share. This would mark year-over-year growth of 58.82%. Our most recent consensus estimate is calling for quarterly revenue of $1.89 billion, up 16.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $8.99 billion, which would represent changes of +240% and +54.88%, respectively, from the prior year.

Any recent changes to analyst estimates for Siderurgica Nacional should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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 5.99% lower. Siderurgica Nacional is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Siderurgica Nacional's current valuation metrics, including its Forward P/E ratio of 2.02. This represents a discount compared to its industry's average Forward P/E of 3.63.

We can also see that SID currently has a PEG ratio of 0.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SID's industry had an average PEG ratio of 0.12 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 26, which puts it in the top 11% 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 SID in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


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


National Steel Company (SID) - free report >>

Published in