Industry Overview - The Zacks Steel Producers industry is positioned to benefit from rising steel prices, supported by a resilient non-residential construction market and strong automotive demand [1][2] - The industry serves various end-use sectors, including automotive, construction, and industrial machinery, with steel being a critical component [3] Current Market Dynamics - U.S. steel prices have increased due to tightened supply from tariffs on imports and higher demand, with benchmark hot-rolled coil prices rising from around $700 per short ton to above $900 per short ton [4] - The automotive market is expected to rebound, driven by the adoption of electric vehicles and government incentives, while non-residential construction remains strong due to infrastructure projects [5] Challenges - A slowdown in China's economy has negatively impacted steel demand, particularly in the real estate sector, which accounts for approximately 40% of China's steel consumption [6] Industry Performance - The Zacks Steel Producers industry has underperformed compared to the S&P 500 and the broader Zacks Basic Materials sector, with a decline of 45.5% over the past year [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 8.04X, below the S&P 500's 15.56X and the sector's 11.52X, indicating potential undervaluation [13] Key Players - **Nucor Corporation**: Expected to benefit from the non-residential construction market and automotive sector, with a focus on production capacity and shareholder returns [18][19] - **Steel Dynamics, Inc.**: Experiencing strong order activity and expanding capacity through new projects, including a state-of-the-art electric arc furnace [20][21] - **United States Steel Corporation**: Focused on operational efficiency and expanding its mini mill segment, with positive customer feedback on new product quality [24][26]

The upcoming report from Steel Dynamics (STLD) is expected to reveal quarterly earnings of $1.39 per share, indicating a decline of 62.1% compared to the year-ago period. Analysts forecast revenues of $4.15 billion, representing a decrease of 11.6% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a com ...

Steel Dynamics, Inc. (STLD) is set to release first-quarter 2025 results after the closing bell on April 22.Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 3.6%, on average. The company posted an earnings surprise of around 5.4% in the last reported quarter. Its first-quarter results are likely to have been supported by higher profitability in steel operations.Shares of STLD have gained 3.7% year to dat ...

Core Viewpoint - Steel Dynamics, Inc. plans to release its First Quarter 2025 financial results on April 22, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be announced after market close on April 22, 2025 [1] - A teleconference to discuss the results is scheduled for April 23, 2025, at 11:00 a.m. Eastern Daylight Time [1] - Key executives participating in the call include Mark D. Millett (Chairman and CEO), Theresa E. Wagler (Executive Vice President and CFO), and Barry Schneider (President and COO) [1] Group 2: Teleconference Participation - Participants can join the teleconference by dialing +1.973.528.0011 at least ten minutes before the start time [2] - The teleconference will also be available in listen-only mode on the company's website [2] - An audio replay of the teleconference will be accessible by dialing +1.919.882.2331 and entering conference ID number 52251, with the replay available until April 30, 2025 [2]

Company Performance - Steel Dynamics (STLD) ended the latest trading session at $111.04, reflecting a +1.68% adjustment from the previous day's close, outperforming the S&P 500's daily loss of 0.23% [1] - The stock has experienced a decline of 12.65% over the past month, which is worse than the Basic Materials sector's loss of 8.32% and the S&P 500's loss of 12.13% [1] Upcoming Earnings - The company's earnings report is scheduled for April 22, 2025, with an anticipated EPS of $1.43, representing a 61.04% decrease compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $4.15 billion, down 11.6% from the previous year [2] Full-Year Estimates - Zacks Consensus Estimates project full-year earnings of $9.50 per share and revenue of $17.88 billion, indicating year-over-year changes of -3.46% for earnings and +1.91% for revenue [3] Analyst Projections - Recent shifts in analyst projections for Steel Dynamics are important as they reflect changes in near-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Steel Dynamics at 3 (Hold) [6] - The Forward P/E ratio for Steel Dynamics is 11.49, which is a premium compared to the industry's Forward P/E of 10.9, while the PEG ratio stands at 0.8, compared to the industry's average PEG ratio of 0.97 [7] Industry Overview - The Steel - Producers industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [8]

Core Viewpoint - The current downturn in the steel industry presents a buying opportunity for companies in cyclical industries, but investors should focus on the strongest competitors, specifically Nucor and Steel Dynamics, rather than United States Steel [1]. Group 1: United States Steel - United States Steel has a historic reputation but is currently struggling, described as a "shell" of its former self, which has attracted acquisition interest from Nippon Steel [2]. - The company relies heavily on blast furnaces, an older and costly steelmaking technology, which is less efficient during periods of low demand and pricing [4]. - U.S. Steel is projected to lose at least $0.49 per share in Q1 2025, indicating significant financial challenges ahead [4][5]. - The business model of U.S. Steel is particularly vulnerable during the current industry downturn, making it a risky investment compared to its competitors [8]. Group 2: Competitors - Nucor and Steel Dynamics - Nucor and Steel Dynamics utilize electric arc mini-mills, which are more flexible and can adjust production based on demand, allowing them to maintain better profit margins [6]. - Despite the industry downturn, Nucor expects earnings between $0.45 and $0.55 per share, while Steel Dynamics projects earnings of $1.36 to $1.40 per share, indicating they will remain profitable [7]. - Both companies have seen significant stock price declines, with Nucor down 40% and Steel Dynamics down 20% from their 52-week highs, making them more attractively priced for potential investors [9].

Shares of Steel Dynamics, Inc. (NASDAQ: STLD ) plunged 9% on Thursday as investors reacted to President Trump’s reciprocal tariff announcement, and shares are now moving back toward a 52-week low. As a domestic steel producer, STLD does not haveOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let ...

Industry Overview - U.S. steel prices have surged over 25% this year, primarily due to a 25% tariff on all steel imports imposed by the Trump administration, which has restricted supply and allowed domestic mills to raise prices [1][3] - The tariffs have created a supply crunch in the domestic market, leading to increased demand for U.S. steel as foreign steel becomes more expensive [3] - Infrastructure spending and strong demand from the construction and automotive sectors have further supported the price rally, with hot-rolled coil (HRC) prices rising past $900 per short ton [4] Company Highlights Nucor Corporation (NUE) - Nucor has a diverse product portfolio and a strong presence in the construction and automotive sectors, maintaining profitability through operational efficiency and cost management [7] - The company is committed to boosting production capacity, which is expected to drive profitable growth and enhance its position as a low-cost producer [8] - Nucor's earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with a trailing four-quarter earnings surprise of approximately 27.2% [9] Steel Dynamics, Inc. (STLD) - Steel Dynamics is experiencing strong customer order activity for flat-rolled steel and is executing projects to increase capacity and profitability [10] - The company has consistently outperformed the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of about 3.6% [11] United States Steel Corporation (X) - U.S. Steel is focused on operational efficiency and cost management, particularly in its North American Flat-Rolled segment, and is executing its "Best for All" strategy [12] - The company has received positive customer feedback on the quality of products from its Big River 2 mill, which is expected to enhance its earnings as it approaches full operational capacity [12] - U.S. Steel's earnings have also beaten the Zacks Consensus Estimate in three of the last four quarters, with a trailing four-quarter earnings surprise of roughly 20.4% [13]

Company Performance - Steel Dynamics (STLD) ended the latest trading session at $127.09, reflecting a +1.72% change from the previous day's close, outperforming the S&P 500's daily loss of 1.07% [1] - Over the past month, shares of Steel Dynamics have decreased by 8.02%, which is worse than the Basic Materials sector's loss of 0.56% and the S&P 500's loss of 7.03% [2] - The upcoming earnings disclosure is expected to show an EPS of $1.41, representing a 61.58% decline compared to the same quarter last year, with projected net sales of $4.17 billion, down 11.11% from the previous year [3] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict 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 [4] Analyst Sentiment - Recent revisions to analyst forecasts for Steel Dynamics are important, as upward revisions indicate analysts' positive outlook on the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which reflects these estimate changes, currently ranks Steel Dynamics at 3 (Hold), with a 5.41% increase in the Zacks Consensus EPS estimate over the last 30 days [6][7] Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 13.16, which is a premium compared to the industry's average Forward P/E of 12.19, and a PEG ratio of 0.92, below the industry average PEG ratio of 1.04 [8] Industry Context - The Steel - Producers industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 175, placing it in the bottom 31% of over 250 industries, indicating weaker performance compared to higher-ranked industries [9]

Core Insights - Steel Dynamics, Inc. (STLD) has provided earnings guidance for Q1 2025 in the range of $1.36 to $1.40 per share, compared to $1.36 in Q4 2024 and $3.67 in Q1 2024 [1] Group 1: Earnings and Operations - The company's steel operations are expected to be more profitable in Q1 2025 than in Q4 2024, driven by higher shipments that will offset some metal margin compression due to lagging contractual steel pricing [2] - Earnings from metals recycling operations in Q1 2025 are anticipated to be higher than in Q4 2024, supported by stronger realized prices and stable volumes for both ferrous and nonferrous materials [3] - Earnings from steel fabrication operations in Q1 2025 are expected to be lower than the previous quarter due to seasonally reduced shipments and a slight decline in realized prices, although order activity has improved [4] Group 2: Demand Drivers - Demand is being driven by sectors such as energy, non-residential building, automotive, and industrial, with increased domestic manufacturing investment and infrastructure programs expected to positively impact demand for various steel products [2][4] Group 3: Financial Actions - The board increased the Q1 2025 cash dividend by 9% to 50 cents per common share and authorized an additional $1.5 billion in share repurchases, following the exhaustion of the previous program [5] - As of March 12, 2025, STLD had repurchased $191 million, or 1%, of its common stock in Q1 [5] Group 4: Stock Performance - Shares of Steel Dynamics have declined by 10.8% over the past year, compared to a 17.7% decline in its industry [6]