In the latest market close, Steel Dynamics (STLD) reached $128.22, with a +0.53% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.9% for the day. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

Heading into today, shares of the steel producer and metals recycler had gained 14.57% over the past month, outpacing the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 3.15% in that time.

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 16, 2024. It is anticipated that the company will report an EPS of $1.98, marking a 42.94% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.25 billion, indicating a 7.35% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.36 per share and a revenue of $17.64 billion, indicating changes of -30.7% and -6.16%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Steel Dynamics. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.55% lower. Steel Dynamics currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Steel Dynamics is currently being traded at a Forward P/E ratio of 12.32. For comparison, its industry has an average Forward P/E of 12.49, which means Steel Dynamics is trading at a discount to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% 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.

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