Steel Dynamics (STLD) closed the most recent trading day at $130.29, moving -3.16% from the previous trading session. This change lagged the S&P 500's 0.27% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.37%.
The steel producer and metals recycler's shares have seen an increase of 9.91% over the last month, surpassing the Basic Materials sector's gain of 5.86% and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Steel Dynamics in its upcoming earnings disclosure. In that report, analysts expect Steel Dynamics to post earnings of $2.71 per share. This would mark year-over-year growth of 32.2%. Meanwhile, our latest consensus estimate is calling for revenue of $4.71 billion, up 8.52% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.33 per share and revenue of $18.37 billion, which would represent changes of -5.18% and +4.71%, respectively, from the prior year.
Any recent changes to analyst estimates for Steel Dynamics should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has moved 0.2% higher. Currently, Steel Dynamics is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Steel Dynamics is presently being traded at a Forward P/E ratio of 14.42. This represents a premium compared to its industry average Forward P/E of 12.78.
We can also see that STLD currently has a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Steel – Producers industry held an average PEG ratio of 0.76.
The Steel – Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.
