Steel Dynamics (STLD) Registers a Bigger Fall Than the Market: Important Facts to Note
Steel Dynamics (STLD) closed the latest trading day at $126.72, indicating a -1.57% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
The steel producer and metals recycler's stock has dropped by 0.42% in the past month, falling short of the Basic Materials sector's gain of 3.81% and the S&P 500's gain of 7.37%.
The investment community will be closely monitoring the performance of Steel Dynamics in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.57, marking a 5.51% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.79 billion, indicating a 3.33% upward movement from the same quarter last year.
STLD's full-year Zacks Consensus Estimates are calling for earnings of $10.18 per share and revenue of $18.14 billion. These results would represent year-over-year changes of +3.46% and +3.42%, respectively.
Investors might also notice recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 1.52% rise in the Zacks Consensus EPS estimate. Steel Dynamics presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Steel Dynamics is currently exchanging hands at a Forward P/E ratio of 12.65. This represents a premium compared to its industry's average Forward P/E of 10.5.
We can also see that STLD currently has a PEG ratio of 0.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.9.
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
