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Steel Dynamics (STLD) Laps the Stock Market: Here's Why

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Steel Dynamics (STLD - Free Report) ended the recent trading session at $141.00, demonstrating a +1.13% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

The steel producer and metals recycler's shares have seen an increase of 8.07% over the last month, surpassing the Basic Materials sector's gain of 4.75% and the S&P 500's gain of 3.54%.

Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 20, 2025. The company is expected to report EPS of $2.66, up 29.76% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.7 billion, reflecting a 8.17% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.93 per share and a revenue of $18.34 billion, representing changes of -9.25% and +4.54%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Steel Dynamics. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 4.3% lower within the past month. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).

In the context of valuation, Steel Dynamics is at present trading with a Forward P/E ratio of 15.61. Its industry sports an average Forward P/E of 14.02, so one might conclude that Steel Dynamics is trading at a premium comparatively.

Also, we should mention that STLD has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STLD's industry had an average PEG ratio of 0.78 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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