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Steel Dynamics (STLD) Stock Sinks As Market Gains: What You Should Know

Steel Dynamics (STLD) closed the most recent trading day at $70.50, moving -0.97% from the previous trading session.

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This story originally appeared on Zacks

In the latest trading session, Steel Dynamics (STLD) closed at $70.50, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%.

- Zacks

Coming into today, shares of the steel producer and metals recycler had gained 16.53% in the past month. In that same time, the Basic Materials sector lost 1.16%, while the S&P 500 gained 1.86%.

STLD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.29, up 741.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.82 billion, up 106.77% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.68 per share and revenue of $17.61 billion, which would represent changes of +381.69% and +83.38%, respectively, from the prior year.

Any recent changes to analyst estimates for STLD should also be noted by investors. 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.

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.

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. The Zacks Consensus EPS estimate has moved 7.25% higher within the past month. STLD is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, STLD is holding a Forward P/E ratio of 5.21. Its industry sports an average Forward P/E of 5.21, so we one might conclude that STLD is trading at a no noticeable deviation comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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