Steel Dynamics (STLD) Stock Sinks As Market Gains: What You Should Know
Steel Dynamics (STLD) closed at $64.36 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day.
Heading into today, shares of the steel producer and metals recycler had gained 6.01% over the past month, outpacing the Basic Materials sector's loss of 2.29% and the S&P 500's loss of 0.12% in that time.
STLD will be looking to display strength as it nears its next earnings release. On that day, STLD is projected to report earnings of $3.05 per share, which would represent year-over-year growth of 548.94%. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, up 95.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.51 per share and revenue of $14.51 billion, which would represent changes of +234.86% and +51.11%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.39% higher. STLD is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, STLD currently has a Forward P/E ratio of 6.78. For comparison, its industry has an average Forward P/E of 7.38, which means STLD is trading at a discount to the group.
Also, we should mention that STLD has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Steel - Producers stocks are, on average, holding a PEG ratio of 0.53 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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.