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Steel Dynamics (STLD) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest market close, Steel Dynamics (STLD - Free Report) reached $130.03, with a -2.82% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.27%.

The stock of steel producer and metals recycler has fallen by 1.19% in the past month, lagging the Basic Materials sector's gain of 4.76% and the S&P 500's gain of 6.9%.

Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. The company is forecasted to report an EPS of $2.57, showcasing a 5.51% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.79 billion, indicating a 3.33% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $10.17 per share and a revenue of $18.14 billion, demonstrating changes of +3.35% and +3.42%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.22% increase. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).

In terms of valuation, Steel Dynamics is presently being traded at a Forward P/E ratio of 13.15. This represents a premium compared to its industry average Forward P/E of 10.74.

Meanwhile, STLD's PEG ratio is currently 0.94. 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. STLD's industry had an average PEG ratio of 0.94 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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