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Steel Dynamics (STLD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Steel Dynamics (STLD - Free Report) ended the recent trading session at $171.03, demonstrating a -1.07% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the steel producer and metals recycler had gained 3.14% over the past month, lagging the Basic Materials sector's gain of 4.09% and outpacing the S&P 500's gain of 0.94%.

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 January 26, 2026. The company is expected to report EPS of $2.09, up 53.68% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.6 billion, indicating a 18.69% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $8.27 per share and a revenue of $18.36 billion, demonstrating changes of -15.96% and +4.66%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.82% lower. Steel Dynamics is currently a Zacks Rank #3 (Hold).

Investors should also note Steel Dynamics's current valuation metrics, including its Forward P/E ratio of 20.89. Its industry sports an average Forward P/E of 14.27, so one might conclude that Steel Dynamics is trading at a premium comparatively.

One should further note that STLD currently holds a PEG ratio of 1.17. 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. The average PEG ratio for the Steel - Producers industry stood at 0.78 at the close of the market yesterday.

The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 166, finds itself in the bottom 33% echelons of all 250+ industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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