Steel Dynamics (STLD) ended the recent trading session at $282.76, demonstrating a +1.15% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.5%. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.31%.
The steel producer and metals recycler's shares have seen an increase of 19.12% over the last month, surpassing the Basic Materials sector's loss of 6.25% and the S&P 500's loss of 0.23%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company is expected to report EPS of $4.14, up 105.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.54 billion, up 21.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.32 per share and revenue of $21.84 billion, indicating changes of +91.74% and +20.17%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 demonstrates that these adjustments in estimates directly associate with imminent 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, the Zacks Consensus EPS estimate has shifted 3.67% upward. Steel Dynamics currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Steel Dynamics has a Forward P/E ratio of 18.25 right now. This valuation marks a premium compared to its industry average Forward P/E of 14.73.
One should further note that STLD currently holds a PEG ratio of 0.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Steel - Producers industry was having an average PEG ratio of 0.52.
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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