Trade-Ideas: Steel Dynamics (STLD) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Steel Dynamics as such a stock due to the following factors:
- STLD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $92.6 million.
- STLD is up 3.6% today from today's close.
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More details on STLD:
Steel Dynamics, Inc., together with its subsidiaries, manufactures and sells steel products; processes and sells recycled ferrous and nonferrous metals; and fabricates and sells steel joist and deck products in the United States and internationally. The stock currently has a dividend yield of 2%. Currently there are 11 analysts that rate Steel Dynamics a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Steel Dynamics has been 3.8 million shares per day over the past 30 days. Steel Dynamics has a market cap of $6.8 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.30 and a short float of 4.6% with 4.02 days to cover. Shares are up 55.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Steel Dynamics as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 38.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STLD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 103.9% when compared to the same quarter one year prior, rising from $30.76 million to $62.74 million.
- Net operating cash flow has increased to $288.90 million or 23.08% when compared to the same quarter last year. In addition, STEEL DYNAMICS INC has also modestly surpassed the industry average cash flow growth rate of 15.49%.
- STLD's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that STLD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.48 is high and demonstrates strong liquidity.
- STEEL DYNAMICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STEEL DYNAMICS INC swung to a loss, reporting -$0.53 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus -$0.53).
- You can view the full Steel Dynamics Ratings Report.
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