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Steel Dynamics (STLD) Registers a Bigger Fall Than the Market: Important Facts to Note

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Steel Dynamics (STLD - Free Report) closed the most recent trading day at $129.89, moving -1.75% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the steel producer and metals recycler had gained 7.94% over the past month. This has outpaced the Basic Materials sector's gain of 5.02% and lagged the S&P 500's gain of 13.42% in that time.

Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. On that day, Steel Dynamics is projected to report earnings of $2.57 per share, which would represent a year-over-year decline of 5.51%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.79 billion, indicating a 3.33% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.18 per share and revenue of $18.14 billion, which would represent changes of +3.46% and +3.42%, respectively, from the prior year.

Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. At present, Steel Dynamics boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Steel Dynamics is presently being traded at a Forward P/E ratio of 12.99. This indicates a premium in contrast to its industry's Forward P/E of 10.45.

We can additionally observe that STLD currently boasts a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Steel - Producers was holding an average PEG ratio of 0.93 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 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.

To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.


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