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Steel Dynamics (STLD) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw Steel Dynamics (STLD - Free Report) ending at $127.16, denoting a -0.06% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.19% for the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.96%.

Shares of the steel producer and metals recycler have depreciated by 4.12% over the course of the past month, underperforming the Basic Materials sector's loss of 0.08% and the S&P 500's gain of 3.35%.

Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. In that report, analysts expect Steel Dynamics to post earnings of $3.33 per share. This would mark a year-over-year decline of 30.77%. In the meantime, our current consensus estimate forecasts the revenue to be $4.71 billion, indicating a 7.25% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.44 per share and revenue of $18.24 billion. These totals would mark changes of -16.79% and -2.93%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 2.5% lower. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).

Looking at valuation, Steel Dynamics is presently trading at a Forward P/E ratio of 10.23. This represents a discount compared to its industry's average Forward P/E of 10.55.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 167, which puts 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.

You can find more information on all of these metrics, and much more, on

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