Steel Dynamics (STLD) closed the most recent trading day at $130.29, moving -3.16% from the previous trading session. This change lagged the S&P 500's 0.27% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.37%.
The steel producer and metals recycler's shares have seen an increase of 9.91% over the last month, surpassing the Basic Materials sector's gain of 5.86% and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. In that report, analysts expect Steel Dynamics to post earnings of $2.71 per share. This would mark year-over-year growth of 32.2%. Meanwhile, our latest consensus estimate is calling for revenue of $4.71 billion, up 8.52% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.33 per share and revenue of $18.37 billion, which would represent changes of -5.18% and +4.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has moved 0.2% higher. Currently, Steel Dynamics is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is presently being traded at a Forward P/E ratio of 14.42. This represents a premium compared to its industry average Forward P/E of 12.78.
We can also see that STLD currently has a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Steel - Producers industry held an average PEG ratio of 0.76.
The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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