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Steel Dynamics (STLD) ended the recent trading session at $114.07, demonstrating a +0.24% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
Prior to today's trading, shares of the steel producer and metals recycler had lost 21.41% over the past month. This has lagged the Basic Materials sector's loss of 10.12% and the S&P 500's loss of 1.98% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.41, indicating a 45.98% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.97 billion, indicating a 6.21% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.95 per share and revenue of $17.69 billion, which would represent changes of -33.44% and -5.87%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.52% lower. Right now, Steel Dynamics possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 11.44. This expresses a discount compared to the average Forward P/E of 11.91 of its industry.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 24% 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.