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Steel Dynamics (STLD) closed at $61.84 in the latest trading session, marking a +0.08% move from the prior day. This move outpaced the S&P 500’s daily loss of 2.04%.
Heading into today, shares of the steel producer and metals recycler had lost 12.03% over the past month, lagging the Basic Materials sector’s loss of 6.35% and the S&P 500’s loss of 1.36% in that time.
STLD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.48, up 778.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.96 billion, up 112.6% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.08 per share and revenue of $17.91 billion. These totals would mark changes of +430.99% and +86.49%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STLD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 6.2% higher. STLD is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, STLD is holding a Forward P/E ratio of 4.1. Its industry sports an average Forward P/E of 4.18, 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 28, putting it in the top 12% 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.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
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