Steel Dynamics (STLD) Increases Despite Market Slip: Here's What You Need to Know

The latest trading session saw Steel Dynamics (STLD) ending at $133.55, denoting a +0.62% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.74% for the day. Elsewhere, the Dow lost 1.53%, while the tech-heavy Nasdaq lost 0.39%.

The steel producer and metals recycler's shares have seen an increase of 2.16% over the last month, not keeping up with the Basic Materials sector's gain of 3.55% and the S&P 500's gain of 6.06%.

The investment community will be closely monitoring the performance of Steel Dynamics in its forthcoming earnings report. On that day, Steel Dynamics is projected to report earnings of $3.33 per share, which would represent a year-over-year decline of 30.77%. Alongside, our most recent consensus estimate is anticipating revenue of $4.71 billion, indicating a 7.25% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.44 per share and a revenue of $18.24 billion, signifying shifts of -16.79% and -2.93%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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 5.47% rise in the Zacks Consensus EPS estimate. Currently, Steel Dynamics is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Steel Dynamics is currently being traded at a Forward P/E ratio of 10.67. This indicates a discount in contrast to its industry's Forward P/E of 10.95.

The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 235, placing it within the bottom 7% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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