NEW YORK (TheStreet) -- Shares of Steel Dynamics (STLD) - Get Report were falling 3% to $19.67 Thursday after rival steel producer Nucor (NUE) - Get Report lowered its first quarter earnings forecast.

Nucor lowered its earnings forecast to a range 10 cents to 15 cents a share from its previous estimates of more than 35 cents a share for the first quarter. Analysts surveyed by Thomson Reuters expect Nucor to report earnings of 40 cents a share for the quarter.

The lower estimates are due to lower selling prices for steel that are a result of high levels of imported steel in the U.S. market, according to Nucor. Total imports rose 38% in 2014, and the trend continued in 2013, with imports accounting for about 39% of total domestic shipments in January, the steelmaker said.

Nucor is the largest steelmaker in the U.S., so its lower forecast and statements helped bring down shares of other steelmakers.

TheStreet Ratings team rates STEEL DYNAMICS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate STEEL DYNAMICS INC (STLD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth greatly exceeded the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 35.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Net operating cash flow has significantly increased by 380.68% to $319.58 million when compared to the same quarter last year. In addition, STEEL DYNAMICS INC has also vastly surpassed the industry average cash flow growth rate of -47.05%.
• The gross profit margin for STEEL DYNAMICS INC is currently extremely low, coming in at 14.54%. Regardless of STLD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STLD's net profit margin of -1.78% significantly underperformed when compared to the industry average.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 182.4% when compared to the same quarter one year ago, falling from $54.66 million to -$45.03 million.
• You can view the full analysis from the report here: STLD Ratings Report