Steel Dynamics (STLD) ended the recent trading session at $173.01, demonstrating a +1.04% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.21%. On the other hand, the Dow registered a gain of 1.35%, and the technology-centric Nasdaq decreased by 0.26%.
The steel producer and metals recycler's stock has climbed by 8.48% in the past month, exceeding the Basic Materials sector's gain of 4.55% and the S&P 500's gain of 0.89%.
Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. The company's upcoming EPS is projected at $2.31, signifying a 69.85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.62 billion, up 19.42% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.49 per share and a revenue of $18.39 billion, indicating changes of -13.72% and +4.82%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Steel Dynamics presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 20.18. This expresses a premium compared to the average Forward P/E of 15.63 of its industry.
Investors should also note that STLD has a PEG ratio of 1.24 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 was holding an average PEG ratio of 0.81 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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