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Steel Dynamics (STLD) Stock Sinks As Market Gains: What You Should Know

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Steel Dynamics (STLD - Free Report) closed at $131.73 in the latest trading session, marking a -1.16% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 0.44%.

Prior to today's trading, shares of the steel producer and metals recycler had gained 2.35% lagged the Basic Materials sector's gain of 2.48% and outpaced the S&P 500's gain of 0.87%.

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, the latest consensus estimate predicts the revenue to be $4.71 billion, indicating a 8.52% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $9.33 per share and a revenue of $18.37 billion, demonstrating changes of -5.18% and +4.71%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Steel Dynamics. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. Right now, Steel Dynamics possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Steel Dynamics is currently being traded at a Forward P/E ratio of 14.28. This expresses a premium compared to the average Forward P/E of 13.87 of its industry.

Investors should also note that STLD has a PEG ratio of 1.08 right now. 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. STLD's industry had an average PEG ratio of 1.02 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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