In the latest trading session, Schnitzer Steel (SCHN - Free Report) closed at $23.31, marking a -1.6% move from the previous day. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.26%.
Coming into today, shares of the recycler of ferrous and nonferrous scrap metal had lost 8.99% in the past month. In that same time, the Basic Materials sector lost 7.16%, while the S&P 500 lost 0.19%.
SCHN will be looking to display strength as it nears its next earnings release. In that report, analysts expect SCHN to post earnings of $0.59 per share. This would mark a year-over-year decline of 53.17%. Our most recent consensus estimate is calling for quarterly revenue of $536.10 million, down 17.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.27 per share and revenue of $2.16 billion, which would represent changes of -57.88% and -8.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SCHN. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.58% higher. SCHN is currently a Zacks Rank #2 (Buy).
Looking at its valuation, SCHN is holding a Forward P/E ratio of 10.44. This valuation marks a premium compared to its industry's average Forward P/E of 9.33.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.