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

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Steel Dynamics (STLD - Free Report) closed at $70.73 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's 2.45% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.18%.

Coming into today, shares of the steel producer and metals recycler had lost 8.03% in the past month. In that same time, the Basic Materials sector lost 9.64%, while the S&P 500 lost 5.71%.

Wall Street will be looking for positivity from Steel Dynamics as it approaches its next earnings report date. On that day, Steel Dynamics is projected to report earnings of $5.62 per share, which would represent year-over-year growth of 65.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.97 billion, up 33.76% from the year-ago period.

STLD's full-year Zacks Consensus Estimates are calling for earnings of $19.84 per share and revenue of $22.65 billion. These results would represent year-over-year changes of +23.31% and +23.02%, respectively.

Any recent changes to analyst estimates for Steel Dynamics 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 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 7.81% lower. Steel Dynamics currently has a Zacks Rank of #3 (Hold).

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 3.62. This represents a premium compared to its industry's average Forward P/E of 2.93.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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