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Steel Dynamics (STLD) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Steel Dynamics (STLD - Free Report) closed at $121.53, marking a -1.73% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.27%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.88%.

Coming into today, shares of the steel producer and metals recycler had lost 8.29% in the past month. In that same time, the Basic Materials sector lost 2.41%, while the S&P 500 gained 2.85%.

The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. In that report, analysts expect Steel Dynamics to post earnings of $3.26 per share. This would mark a year-over-year decline of 32.22%. Simultaneously, our latest consensus estimate expects the revenue to be $4.71 billion, showing a 7.25% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.49 per share and revenue of $18.24 billion, which would represent changes of -16.45% and -2.93%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 1.05% higher within the past month. Steel Dynamics is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 9.9. For comparison, its industry has an average Forward P/E of 10.21, 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 158, which puts it in the bottom 38% 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.

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

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