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Steel Dynamics (STLD) Rises Higher Than Market: Key Facts

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In the latest trading session, Steel Dynamics (STLD - Free Report) closed at $110.49, marking a +0.67% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.

The steel producer and metals recycler's stock has climbed by 9.56% in the past month, exceeding the Basic Materials sector's loss of 3.37% and the S&P 500's loss of 2.1%.

Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 18, 2023. The company is forecasted to report an EPS of $3.48, showcasing a 36.26% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.71 billion, reflecting a 16.72% fall from the equivalent quarter last year.

STLD's full-year Zacks Consensus Estimates are calling for earnings of $14.64 per share and revenue of $18.93 billion. These results would represent year-over-year changes of -35.45% and -14.96%, respectively.

Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 5.08% lower. Steel Dynamics presently features a Zacks Rank of #4 (Sell).

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 7.5. This expresses a discount compared to the average Forward P/E of 8.41 of its industry.

The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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