In the latest trading session, Steel Dynamics (STLD) closed at $222.06, marking a -2.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Prior to today's trading, shares of the steel producer and metals recycler had lost 14.75% lagged the Basic Materials sector's loss of 4.72% and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company is expected to report EPS of $3.66, up 82.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.46 billion, up 19.53% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $16.73 per share and a revenue of $22.32 billion, demonstrating changes of +109.39% and +22.82%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Steel Dynamics. These revisions help to show the ever-changing nature 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 suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 10.37% upward. Currently, Steel Dynamics is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Steel Dynamics is currently exchanging hands at a Forward P/E ratio of 13.68. This expresses a premium compared to the average Forward P/E of 13.1 of its industry.
It is also worth noting that STLD currently has a PEG ratio of 0.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Steel - Producers industry currently had an average PEG ratio of 0.4 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 34% echelons 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.
To follow STLD in the coming trading sessions, be sure to utilize Zacks.com.
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Steel Dynamics, Inc. (STLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).