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Steel Dynamics (STLD) Stock Dips While Market Gains: Key Facts

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In the latest market close, Steel Dynamics (STLD - Free Report) reached $144.23, with a -0.29% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.74%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 1.68%.

Shares of the steel producer and metals recycler have appreciated by 7.99% over the course of the past month, outperforming the Basic Materials sector's gain of 3.54% and the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. The company is forecasted to report an EPS of $3.54, showcasing a 11.72% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.74 billion, indicating a 3.2% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.60 per share and a revenue of $18.11 billion, representing changes of -22.41% and -3.67%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.85% higher. Steel Dynamics is currently a Zacks Rank #3 (Hold).

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 12.47. This denotes a premium relative to the industry's average Forward P/E of 10.72.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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