Steel Dynamics (STLD) closed at $245.49 in the latest trading session, marking a -2.2% move from the prior day. This move lagged the S&P 500’s daily loss of 0.05%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.
The steel producer and metals recycler’s shares have seen a decrease of 3.74% over the last month, not keeping up with the Basic Materials sector’s loss of 2.52% and the S&P 500’s loss of 1.42%.
Market participants will be closely following the financial results of Steel Dynamics in its upcoming release. The company is expected to report EPS of $3.66, up 82.09% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $5.46 billion, reflecting a 19.53% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.78 per share and a revenue of $22.32 billion, signifying shifts of +110.01% and +22.82%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Steel Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.75% increase. Steel Dynamics presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Steel Dynamics is currently exchanging hands at a Forward P/E ratio of 14.95. This valuation marks a premium compared to its industry average Forward P/E of 13.59.
It’s also important to note that STLD currently trades at a PEG ratio of 0.49. 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. The average PEG ratio for the Steel – Producers industry stood at 0.46 at the close of the market yesterday.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
