Schnitzer Steel (SCHN - Free Report) closed the most recent trading day at $22.63, moving +0.8% from the previous trading session. This move traded in line with S&P 500. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 1.14%.
Heading into today, shares of the recycler of ferrous and nonferrous scrap metal had lost 9.69% over the past month, outpacing the Basic Materials sector's loss of 10.47% and lagging the S&P 500's loss of 3.2% in that time.
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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.27 per share and revenue of $2.16 billion. These totals would mark changes of -57.88% and -8.67%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SCHN. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SCHN currently has a Zacks Rank of #2 (Buy).
In terms of valuation, SCHN is currently trading at a Forward P/E ratio of 9.89. Its industry sports an average Forward P/E of 9.06, so we one might conclude that SCHN is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.