Why the Market Dipped But Steel Dynamics (STLD) Gained Today

The latest trading session saw Steel Dynamics (STLD) ending at $127.09, denoting a +1.72% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 1.71%.Prior to today's trading, shares of the steel producer and metals recycler had lost 8.02% over the past month. This has lagged the Basic Materials sector's loss of 0.56% and the S&P 500's loss of 7.03% in that time.Investors will be eagerly watching for the performance of Steel Dynamics in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.41, marking a 61.58% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.17 billion, down 11.11% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.49 per share and revenue of $17.85 billion, indicating changes of -3.56% and +1.79%, respectively, compared to the previous year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Steel Dynamics. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.41% increase. As of now, Steel Dynamics holds a Zacks Rank of #3 (Hold).Looking at its valuation, Steel Dynamics is holding a Forward P/E ratio of 13.16. This denotes a premium relative to the industry's average Forward P/E of 12.19.Investors should also note that STLD has a PEG ratio of 0.92 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Steel - Producers industry had an average PEG ratio of 1.04.The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 31% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steel Dynamics, Inc. (STLD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks