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Steel Dynamics (STLD) Gains As Market Dips: What You Should Know

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Steel Dynamics (STLD - Free Report) closed the most recent trading day at $71.02, moving +0.62% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.

Prior to today's trading, shares of the steel producer and metals recycler had lost 6.03% over the past month. This has lagged the Basic Materials sector's loss of 2.94% and was narrower than the S&P 500's loss of 6.69% in that time.

Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. In that report, analysts expect Steel Dynamics to post earnings of $5.64 per share. This would mark year-over-year growth of 65.88%. Our most recent consensus estimate is calling for quarterly revenue of $6.13 billion, up 37.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $21.52 per share and revenue of $23.72 billion, which would represent changes of +33.75% and +28.86%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Steel Dynamics. 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.

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 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. The Zacks Consensus EPS estimate has moved 3.99% higher within the past month. Steel Dynamics currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 3.28. For comparison, its industry has an average Forward P/E of 3.07, which means Steel Dynamics is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.

To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.


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