Steel Dynamics (STLD) closed at $57.75 in the latest trading session, marking a -0.64% move from the prior day. This change lagged the S&P 500’s daily loss of 0.08%.
Prior to today’s trading, shares of the steel producer and metals recycler had lost 15.72% over the past month. This has lagged the Basic Materials sector’s loss of 4.18% and the S&P 500’s loss of 1.81% in that time.
Wall Street will be looking for positivity from STLD as it approaches its next earnings report date. On that day, STLD is projected to report earnings of $4.35 per share, which would represent year-over-year growth of 752.94%. Meanwhile, our latest consensus estimate is calling for revenue of $4.96 billion, up 112.6% from the prior-year quarter.
STLD’s full-year Zacks Consensus Estimates are calling for earnings of $15.08 per share and revenue of $17.91 billion. These results would represent year-over-year changes of +430.99% and +86.49%, respectively.
It is also important to note the recent changes to analyst estimates for STLD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.27% higher. STLD is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, STLD currently has a Forward P/E ratio of 3.85. Its industry sports an average Forward P/E of 4.08, so we one might conclude that STLD is trading at a discount comparatively.
The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
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