Back to top

Image: Bigstock

TimkenSteel (TMST) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

TimkenSteel (TMST - Free Report) closed at $17.37 in the latest trading session, marking a +0.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.03%.

Prior to today's trading, shares of the maker of steel large bars and seamless mechanical tubing had lost 24.61% over the past month. This has was narrower than the Basic Materials sector's loss of 25.14% and lagged the S&P 500's loss of 6.03% in that time.

TimkenSteel will be looking to display strength as it nears its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $411.35 million, up 25.68% from the year-ago period.

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 recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TimkenSteel is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note TimkenSteel's current valuation metrics, including its Forward P/E ratio of 4.18. This represents a premium compared to its industry's average Forward P/E of 2.66.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


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


Timken Steel Corporation (TMST) - free report >>

Published in