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Steel Dynamics (STLD) Stock Moves -0.09%: What You Should Know

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The latest trading session saw Steel Dynamics (STLD - Free Report) ending at $118.94, denoting a -0.09% adjustment from its last day's close. This change was narrower than the S&P 500's 0.89% loss on the day. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 1.67%.

Heading into today, shares of the steel producer and metals recycler had lost 3.44% over the past month, lagging the Basic Materials sector's gain of 0.6% and the S&P 500's gain of 2.17% in that time.

The upcoming earnings release of Steel Dynamics will be of great interest to investors. It is anticipated that the company will report an EPS of $2.22, marking a 36.02% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.3 billion, showing a 6.28% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.74 per share and revenue of $17.76 billion, indicating changes of -28.16% and -5.53%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Steel Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 past month, there's been a 6.7% fall in the Zacks Consensus EPS estimate. Steel Dynamics presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Steel Dynamics is presently trading at a Forward P/E ratio of 11.09. This indicates a discount in contrast to its industry's Forward P/E of 12.03.

The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 213, positioning it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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