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

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In the latest trading session, Steel Dynamics (STLD - Free Report) closed at $106.97, marking a +0.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.

Prior to today's trading, shares of the steel producer and metals recycler had gained 14.73% over the past month. This has outpaced the Basic Materials sector's gain of 5.33% and the S&P 500's gain of 4.22% in that time.

Steel Dynamics will be looking to display strength as it nears its next earnings release. On that day, Steel Dynamics is projected to report earnings of $4.98 per share, which would represent a year-over-year decline of 26%. Our most recent consensus estimate is calling for quarterly revenue of $5.41 billion, down 12.98% from the year-ago period.

STLD's full-year Zacks Consensus Estimates are calling for earnings of $16.04 per share and revenue of $19.94 billion. These results would represent year-over-year changes of -29.28% and -10.44%, respectively.

Investors might also notice recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 has moved 2.42% higher. Steel Dynamics is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 6.66. For comparison, its industry has an average Forward P/E of 8.49, which means Steel Dynamics is trading at a discount to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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