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Steel Dynamics (STLD) closed the latest trading day at $126.72, indicating a -1.57% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
The steel producer and metals recycler's stock has dropped by 0.42% in the past month, falling short of the Basic Materials sector's gain of 3.81% and the S&P 500's gain of 7.37%.
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The investment community will be closely monitoring the performance of Steel Dynamics in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.57, marking a 5.51% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.79 billion, indicating a 3.33% upward movement from the same quarter last year.
STLD's full-year Zacks Consensus Estimates are calling for earnings of $10.18 per share and revenue of $18.14 billion. These results would represent year-over-year changes of +3.46% and +3.42%, respectively.
Investors might also notice 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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. Over the past month, there's been a 1.52% rise in the Zacks Consensus EPS estimate. Steel Dynamics presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Steel Dynamics is currently exchanging hands at a Forward P/E ratio of 12.65. This represents a premium compared to its industry's average Forward P/E of 10.5.
We can also see that STLD currently has a PEG ratio of 0.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.9.
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.