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Steel Dynamics (STLD) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Steel Dynamics (STLD - Free Report) closed at $230.39, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Shares of the steel producer and metals recycler have depreciated by 0.43% over the course of the past month, outperforming the Basic Materials sector's loss of 9.1%, and lagging the S&P 500's gain of 0.96%.
The upcoming earnings release of Steel Dynamics will be of great interest to investors. In that report, analysts expect Steel Dynamics to post earnings of $5.64 per share. This would mark year-over-year growth of 105.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.21 billion, indicating a 28.6% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.95 per share and a revenue of $23.55 billion, representing changes of +124.66% and +29.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 6.03% higher. Right now, Steel Dynamics possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Steel Dynamics is at present trading with a Forward P/E ratio of 13.02. Its industry sports an average Forward P/E of 13.77, so one might conclude that Steel Dynamics is trading at a discount comparatively.
It is also worth noting that STLD currently has a PEG ratio of 0.42. 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 0.42.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Steel Dynamics (STLD) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Steel Dynamics (STLD - Free Report) closed at $230.39, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.77% loss on the day. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Shares of the steel producer and metals recycler have depreciated by 0.43% over the course of the past month, outperforming the Basic Materials sector's loss of 9.1%, and lagging the S&P 500's gain of 0.96%.
The upcoming earnings release of Steel Dynamics will be of great interest to investors. In that report, analysts expect Steel Dynamics to post earnings of $5.64 per share. This would mark year-over-year growth of 105.84%. In the meantime, our current consensus estimate forecasts the revenue to be $6.21 billion, indicating a 28.6% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.95 per share and a revenue of $23.55 billion, representing changes of +124.66% and +29.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 6.03% higher. Right now, Steel Dynamics possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Steel Dynamics is at present trading with a Forward P/E ratio of 13.02. Its industry sports an average Forward P/E of 13.77, so one might conclude that Steel Dynamics is trading at a discount comparatively.
It is also worth noting that STLD currently has a PEG ratio of 0.42. 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 0.42.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.