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Steel Dynamics (STLD) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Steel Dynamics (STLD - Free Report) standing at $125, reflecting a -1.22% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.03%.

Shares of the steel producer and metals recycler witnessed a loss of 4.91% over the previous month, beating the performance of the Basic Materials sector with its loss of 6.9% and underperforming the S&P 500's gain of 3.34%.

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 July 17, 2024. On that day, Steel Dynamics is projected to report earnings of $2.94 per share, which would represent a year-over-year decline of 38.88%. Alongside, our most recent consensus estimate is anticipating revenue of $4.52 billion, indicating a 11.04% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.14 per share and revenue of $18.03 billion, which would represent changes of -18.8% and -4.09%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.77% lower. Steel Dynamics is currently a Zacks Rank #3 (Hold).

With respect to valuation, Steel Dynamics is currently being traded at a Forward P/E ratio of 10.43. This signifies a discount in comparison to the average Forward P/E of 10.46 for its industry.

The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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