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Steel Dynamics (STLD) Laps the Stock Market: Here's Why

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Steel Dynamics (STLD - Free Report) ended the recent trading session at $131.15, demonstrating a +2.89% change from the preceding day's closing price. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%.

Shares of the steel producer and metals recycler have depreciated by 2.03% over the course of the past month, underperforming the Basic Materials sector's loss of 0.05%, and the S&P 500's gain of 4.2%.

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 21, 2025. It is anticipated that the company will report an EPS of $2.04, marking a 25% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.67 billion, up 0.72% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.72 per share and revenue of $18.26 billion, which would represent changes of -1.22% and +4.12%, respectively, from the prior year.

Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.7% lower. At present, Steel Dynamics boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Steel Dynamics is currently being traded at a Forward P/E ratio of 13.11. This represents no noticeable deviation compared to its industry average Forward P/E of 13.11.

We can additionally observe that STLD currently boasts a PEG ratio of 0.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Steel - Producers industry currently had an average PEG ratio of 0.94 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 199, placing it within the bottom 20% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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