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Steel Dynamics (STLD) Dips More Than Broader Market: What You Should Know
In the latest trading session, Steel DynamicsSTLD-- (STLD) closed at $237.08, marking a -1.5% move from the previous day. This change lagged the S&P 500's 0.59% loss on the day. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Heading into today, shares of the steel producer and metals recycler had lost 8.55% over the past month, lagging the Basic Materials sector's gain of 2.83% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Steel Dynamics in its upcoming release. In that report, analysts expect Steel Dynamics to post earnings of $5.71 per share. This would mark year-over-year growth of 108.39%. Our most recent consensus estimate is calling for quarterly revenue of $6.15 billion, up 27.4% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.14 per share and a revenue of $23.37 billion, indicating changes of +114.52% and +28.59%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Steel Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Steel Dynamics presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is currently trading at a Forward P/E ratio of 14.05. This expresses a discount compared to the average Forward P/E of 15.78 of its industry.
One should further note that STLDSTLD-- currently holds a PEG ratio of 0.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Steel - Producers stocks are, on average, holding a PEG ratio of 0.46 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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