Steel Dynamics (STLD) closed the most recent trading day at $136.85, moving -2.02% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
The steel producer and metals recycler's stock has climbed by 8.93% in the past month, exceeding the Basic Materials sector's gain of 5.07% and the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.65, indicating a 29.27% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.69 billion, indicating a 8% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.91 per share and a revenue of $18.33 billion, signifying shifts of -9.45% and +4.52%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Steel Dynamics. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.48% decrease. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).
Digging into valuation, Steel Dynamics currently has a Forward P/E ratio of 15.67. This valuation marks a premium compared to its industry average Forward P/E of 13.87.
Investors should also note that STLD has a PEG ratio of 1.14 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Steel - Producers industry had an average PEG ratio of 0.77 as trading concluded yesterday.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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