Sell-side analysts on Wall Street are anticipating that Steel Dynamics, Inc. (NASDAQ:STLD) will report earnings of $0.79 per share when the company issues their quarterly report today. This is the consensus EPS number according to data from Zack’s Research. How the estimated EPS differs from the actual earnings number is what investors will be paying particularly close attention to.
In the most recent quarter Steel Dynamics, Inc. (NASDAQ:STLD) posted a surprise factor of 3.8%. The actual number was $0.03 away from the Zacks analyst consensus just prior to the actual release. A significant surprise factor can lead to stock swings in the price in the hours and days following the earnings report.
Projected Stock Movement
Research analysts covering shares of Steel Dynamics, Inc. (NASDAQ:STLD) are anticipating on a consensus basis that the stock will reach $41.7 within the next 52 weeks. Of the analysts providing short term targets, the most bullish analyst has a $45 target on the stock. On the other end, the most conservative has a short term target of $30. This is based on the 10 analysts taken into consideration by Zacks. The consensus price target was last revised on 2017-07-10.
Zacks also provides a simplified scale for analyst recommendations. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating. Steel Dynamics, Inc. (NASDAQ:STLD) currently has an ABR of 1.36 heading into today’s announcement. This number is also based on the 10 sell-side firms polled by Zacks.
One of the most famous sayings in the stock market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many novice investors who often do the complete opposite. Many investors may be looking too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to locate stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.
This article is informational purposes only and should not be considered a recommendation to buy or sell Steel Dynamics, Inc..