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TimkenSteel (TMST) Gains But Lags Market: What You Should Know

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TimkenSteel (TMST - Free Report) closed at $16.14 in the latest trading session, marking a +0.37% move from the prior day. This change lagged the S&P 500's 0.92% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.54%.

Prior to today's trading, shares of the maker of steel large bars and seamless mechanical tubing had gained 12.45% over the past month. This has outpaced the Basic Materials sector's gain of 3.29% and the S&P 500's loss of 0.85% in that time.

TimkenSteel will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.60, up 5900% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $315.5 million, up 49.38% from the year-ago period.

Any recent changes to analyst estimates for TimkenSteel 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.

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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TimkenSteel is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TimkenSteel is currently trading at a Forward P/E ratio of 5.27. For comparison, its industry has an average Forward P/E of 5.3, which means TimkenSteel is trading at a discount to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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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