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Olympic Steel (ZEUS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Olympic Steel (ZEUS - Free Report) closed at $49.45, marking a +0.41% move from the previous day. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Heading into today, shares of the steel maker had gained 6.74% over the past month, outpacing the Basic Materials sector's loss of 3.26% and the S&P 500's loss of 1.21% in that time.

Wall Street will be looking for positivity from Olympic Steel as it approaches its next earnings report date. In that report, analysts expect Olympic Steel to post earnings of $0.88 per share. This would mark a year-over-year decline of 71.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $596.6 million, down 14.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.50 per share and revenue of $2.35 billion. These totals would mark changes of -54.95% and -8.32%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Olympic Steel. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 32.89% higher. Olympic Steel currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Olympic Steel is currently trading at a Forward P/E ratio of 14.09. This represents a premium compared to its industry's average Forward P/E of 9.26.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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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