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TimkenSteel (TMST) Dips More Than Broader Markets: What You Should Know
TimkenSteel (TMST - Free Report) closed at $19.78 in the latest trading session, marking a -1.2% move from the prior day. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the maker of steel large bars and seamless mechanical tubing had lost 18.25% over the past month. This has lagged the Basic Materials sector's loss of 12.25% and the S&P 500's loss of 0.62% in that time.
Wall Street will be looking for positivity from TimkenSteel as it approaches its next earnings report date. On that day, TimkenSteel is projected to report earnings of $1.31 per share, which would represent year-over-year growth of 36.46%. Meanwhile, our latest consensus estimate is calling for revenue of $411.35 million, up 25.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $1.52 billion, which would represent changes of +29.28% and +18.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TimkenSteel. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 #2 (Buy).
Digging into valuation, TimkenSteel currently has a Forward P/E ratio of 4.82. This represents a premium compared to its industry's average Forward P/E of 2.81.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.