Core Insights - Steel Dynamics, Inc. (STLD) is a key player in the steel industry, recognized for its innovative production processes and diverse product offerings [1] - The company operates in multiple segments, including steel operations, metals recycling, and steel fabrication, competing with major producers like Nucor Corporation and United States Steel Corporation [1] Financial Performance - STLD is expected to report earnings per share (EPS) of $2.66 for the quarter ended September 2025, marking a year-over-year increase of 29.8% [2] - Projected revenue for the same quarter is approximately $4.76 billion, reflecting an 8.2% rise compared to the previous year [2] - The consensus EPS estimate has been revised upward by 0.6% over the past 30 days, indicating a positive outlook from analysts [3][6] Market Position and Valuation - STLD has been rated as a "Hold" as its shares approach their fair value, following a period of outperforming the market and nearing the $145-$150 price target [4] - The company benefits from higher tariffs, strong demand in the automotive and data center sectors, and the ramp-up of its new aluminum facility, which supports its margin and growth outlooks [4] - Financial metrics show a price-to-earnings (P/E) ratio of approximately 20.46 and a debt-to-equity ratio of around 0.43, indicating a balanced approach to financing [5][6] - The current ratio of 3.13 suggests a strong ability to cover short-term liabilities with short-term assets [5]

Core Viewpoint - Steel Dynamics (STLD) is set to report its financial results on October 20, 2025, with expectations of a significant increase in earnings per share (EPS) and revenue compared to the previous year [2][3]. Financial Performance - The anticipated EPS for the upcoming quarter is $2.66, reflecting a 29.76% increase year-over-year [2]. - Revenue is expected to reach $4.69 billion, indicating an 8.04% rise from the same quarter last year [2]. - For the entire year, the Zacks Consensus Estimates forecast an EPS of $8.9, which represents a decrease of 9.55% compared to the previous year, while revenue is projected at $18.22 billion, showing a growth of 3.88% [3]. Analyst Estimates - Recent changes in analyst estimates for Steel Dynamics are crucial, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [4]. - The Zacks Rank system, which evaluates these estimate changes, currently assigns Steel Dynamics a rank of 3 (Hold) [6]. Valuation Metrics - Steel Dynamics is trading at a Forward P/E ratio of 16.42, which is higher than the industry average of 13.51, suggesting a premium valuation [7]. - The company has a PEG ratio of 1.19, compared to the industry average of 0.81, indicating that Steel Dynamics is expected to grow at a faster rate than its peers [8]. Industry Context - The Steel - Producers industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries [8].

Core Viewpoint - Steel Dynamics (STLD) is expected to report quarterly earnings of $2.66 per share, reflecting a year-over-year increase of 29.8%, with anticipated revenues of $4.7 billion, an 8.2% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.6% in the past 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue and Sales Forecasts - Analysts project 'External Net Sales- Steel' to reach $3.27 billion, a 12% increase from the year-ago quarter [5]. - The estimate for 'External Net Sales- Steel Fabrication' is $403.07 million, indicating a decrease of 9.9% year-over-year [5]. - 'External Net Sales- Metals Recycling' is expected to be $530.23 million, reflecting a decline of 6.3% from the previous year [5]. - 'External Net Sales- Other' is forecasted at $396.62 million, a decrease of 3.7% year-over-year [6]. Pricing and Shipment Metrics - The average external sales price for steel is projected to be $1,083 per tonne, up from $1,059 per tonne a year ago [6]. - The average sales price for steel fabrication is expected to be $2,589 per tonne, down from $2,836 per tonne in the previous year [7]. - 'Steel - External Shipments' are anticipated to reach 3,018 thousand tons, compared to 2,755 thousand tons last year [7]. - 'Steel Fabrication - Shipments' are expected to be 156 thousand tons, slightly down from 159 thousand tons year-over-year [8]. - 'Steel - Flat Roll shipments' are projected at 2,105 thousand tons, an increase from 1,924 thousand tons last year [9]. - 'Metals Recycling - Ferrous shipments' are estimated at 1,571 thousand tons, up from 1,459 thousand tons in the same quarter of the previous year [9]. - 'Steel - Flat Roll shipments - Steel Processing Divisions' are expected to be 489 thousand tons, compared to 471 thousand tons last year [10]. Stock Performance - Over the past month, Steel Dynamics shares have returned +5.2%, outperforming the Zacks S&P 500 composite's +1% change, indicating a performance that aligns with the overall market [11].

Core Viewpoint - Steel Dynamics (STLD) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with earnings expected to be $2.66 per share, reflecting a 29.8% increase, and revenues projected at $4.7 billion, an 8.2% rise from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for October 20, and the stock may experience upward movement if the reported figures exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 0.1% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.25% for Steel Dynamics, suggesting a likelihood of beating the consensus EPS estimate [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. Historical Performance - In the last reported quarter, Steel Dynamics was expected to post earnings of $2.05 per share but delivered $2.01, resulting in a surprise of -1.95% [13]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14]. Investment Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance post-earnings release [15]. - Investors are encouraged to consider both the Earnings ESP and Zacks Rank when evaluating Steel Dynamics ahead of its earnings announcement [16].

Core Insights - Steel Dynamics, Inc. (NASDAQ: STLD) has experienced a moderate performance over the past year, with a stock price increase of approximately 9% [1] - The company is influenced by two tariff factors: higher steel and aluminum prices enhance the competitiveness of domestic steelmakers, while tariffs have a counteracting effect [1] Company Performance - The stock has added about 9% over the past year, indicating a stable performance in a fluctuating market [1] - The interplay of tariffs and commodity prices is critical in determining the company's market position and profitability [1] Industry Context - The domestic steel industry is affected by external tariff policies, which can either bolster or hinder competitiveness depending on market conditions [1]

Company Overview - Worthington Enterprises, Inc. (NYSE:WOR) is a diversified metals manufacturing company involved in steel processing and pressure cylinders production, competing with major players like Steel Dynamics and Nucor Corporation [1][5] - The company's market capitalization is approximately $2.67 billion, indicating its significant presence in the industry [4][5] Stock Performance - The stock price for WOR is currently $53.67, reflecting a decrease of 10.93% from its previous value [3][5] - During the trading day, the stock fluctuated between $50.62 and $55.50, showcasing notable volatility [3] - Over the past year, WOR's stock has reached a high of $70.91 and a low of $37.88, further indicating significant price fluctuations [3] Recent Developments - On September 24, 2025, CJS Securities upgraded Worthington to an "Outperform" rating, with the stock initially priced at $51.80 [1][5] - Worthington held its Q1 2026 earnings call on the same day, featuring key figures from the company and analysts from Thompson Research Group and Goldman Sachs Group, who provided insights into the company's financial performance and future outlook [2]

Company Performance - Steel Dynamics (STLD) closed at $136.69, down 1.71% from the previous trading session, underperforming the S&P 500's loss of 0.55% [1] - Over the past month, shares of Steel Dynamics gained 4.34%, slightly trailing the Basic Materials sector's gain of 4.52% and outperforming the S&P 500's gain of 3.64% [1] Upcoming Earnings - The earnings report for Steel Dynamics is scheduled for October 20, 2025, with projected earnings per share (EPS) of $2.66, indicating a 29.76% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $4.7 billion, reflecting an 8.26% increase from the same quarter last year [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $8.93 per share and revenue of $18.34 billion, representing changes of -9.25% and +4.54% from the prior year, respectively [3] - Recent revisions to analyst forecasts are important as they reflect near-term business trends, with positive changes indicating a favorable outlook on business health and profitability [3] Valuation Metrics - Steel Dynamics has a Forward P/E ratio of 15.57, which is a premium compared to the industry average Forward P/E of 14.14 [6] - The company has a PEG ratio of 1.13, while the Steel - Producers industry has an average PEG ratio of 0.78 [6] Industry Context - The Steel - Producers industry is part of the Basic Materials sector and currently holds a Zacks Industry Rank of 165, placing it in the bottom 34% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - Steel Dynamics, Inc. (STLD) has provided third-quarter 2025 earnings guidance, expecting earnings per share in the range of $2.60 to $2.64, an increase from $2.01 in the second quarter and $2.05 in the same quarter last year [1][2][7] Group 1: Earnings and Profitability - The steel operations are anticipated to show improved profitability due to strong shipments and an expansion in metal spread, as scrap raw material costs are expected to decline more than the average realized steel pricing [2][3] - Earnings from metals recycling operations are projected to be significantly stronger in the third quarter compared to the second quarter, with steel fabrication operations also expected to benefit from increased volume and steady metal spread [3] Group 2: Operational Developments - The aluminum division is on track to successfully commission the Columbus, MS, aluminum flat rolled products mill and the San Luis Potosi satellite recycled slab center, with cast houses and hot strip mills operating effectively [4] - As of September 11, 2025, the company has repurchased $185 million, or 1%, of its common stock during the third quarter [4] Group 3: Market Performance - STLD's shares have increased by 16.8% over the past year, contrasting with a 15.4% decline in the industry [5]

Company Overview - Nucor is the largest and most diversified steel company in North America, focusing on producing steel through electric arc mini-mills, which utilize electricity and scrap steel for recycling [2][4][5] - The company has expanded its business to include higher-margin specialty steel products, such as building parts, and has made recent acquisitions in the clean energy sector and data center operations [5] Production Method - Unlike traditional blast furnaces that require iron ore and metallurgical coal, Nucor's electric arc mini-mills have lower costs and greater flexibility, allowing for easier adjustments in production based on demand [2][4] - This production method contributes to stronger profitability for Nucor throughout the cyclical nature of the steel industry [4] Market Position and Investment Sentiment - Nucor has experienced fluctuations in market favor, being out of favor on Wall Street at times, which presents buying opportunities for contrarian investors [6][7] - The recent investment by Berkshire Hathaway in Nucor reinforces confidence in the company's long-term prospects, aligning with the belief that Nucor is a solid investment choice [6]

Industry Overview - The North American steel sector is facing weak pricing and muted demand growth, leading to cautious investor sentiment due to a lack of clear catalysts [1] - Hot Rolled Coil (HRC) prices have decreased by 6% quarter-to-date, while scrap prices have remained stable, failing to alleviate margin pressures [2] - Real demand in the sector remains weak, and inventories are deemed adequate, prompting a cautious approach from buyers [4] Market Dynamics - Mills have gained market share from imports, supported by structural improvements in metal spreads compared to pre-pandemic and 2024 averages [3] - Utilization rates have risen above 79%, aided by a significant drop in imports, which fell by 16% month-over-month and 21% year-over-year in August, alongside a 2 million-ton increase in domestic shipments this year [3] Future Outlook - JP Morgan anticipates that the uncertain pricing environment, range-bound trading, and weak demand will persist through the fourth quarter [4] - Smaller fall outages compared to last year and rising production present additional challenges, with stronger growth potentially reliant on multiple rate cuts and clearer trade policies with Mexico and Canada, which are unlikely to materialize soon [5] Company Performance - JP Morgan models a 4% earnings decline for Nucor and a 6% decline for Steel Dynamics in the third quarter, citing weaker pricing and shipment risks [6] - Nucor's results are expected to remain resilient due to softer Brazilian pig iron tariffs, which may offset pressure on plate pricing [6] - Steel Dynamics is facing challenges from lingering coated inventory and ongoing losses at its aluminum rolling mill [6] Investment Ratings - JP Morgan maintains Neutral ratings for Steel Dynamics with a price forecast of $150, Cleveland-Cliffs at $10, and Commercial Metals Company at $54 [6] - Nucor is rated Overweight with a price forecast of $165, while Reliance Steel & Aluminum also holds an Overweight rating with a price forecast of $350 [6]