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Why Steel Dynamics (STLD) Outpaced the Stock Market Today
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Steel Dynamics (STLD - Free Report) closed the most recent trading day at $136.84, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
Shares of the steel producer and metals recycler have appreciated by 1.95% over the course of the past month, underperforming the Basic Materials sector's gain of 3.65% and the S&P 500's gain of 4.61%.
The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. The company's upcoming EPS is projected at $2.57, signifying a 5.51% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.79 billion, reflecting a 3.33% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.18 per share and revenue of $18.14 billion. These totals would mark changes of +3.46% and +3.42%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.28% increase. At present, Steel Dynamics boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 13.33. This expresses a premium compared to the average Forward P/E of 10.44 of its industry.
Investors should also note that STLD has a PEG ratio of 0.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.95.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Steel Dynamics (STLD) Outpaced the Stock Market Today
Steel Dynamics (STLD - Free Report) closed the most recent trading day at $136.84, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
Shares of the steel producer and metals recycler have appreciated by 1.95% over the course of the past month, underperforming the Basic Materials sector's gain of 3.65% and the S&P 500's gain of 4.61%.
The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. The company's upcoming EPS is projected at $2.57, signifying a 5.51% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.79 billion, reflecting a 3.33% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.18 per share and revenue of $18.14 billion. These totals would mark changes of +3.46% and +3.42%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.28% increase. At present, Steel Dynamics boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 13.33. This expresses a premium compared to the average Forward P/E of 10.44 of its industry.
Investors should also note that STLD has a PEG ratio of 0.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.95.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.