Why Steel Dynamics (STLD) Stock Is Up Today

NEW YORK (TheStreet) -- Steel Dynamics (STLD) was gaining 4.4% to $21.66 Tuesday after beating analysts' estimates in the second quarter and purchasing the Severstal Columbus mini-mill.

For the second quarter Steel Dynamics reported earnings of 31 cents a share, beating the Capital IQ Consensus of 30 cents a share by 1 cent. Revenue grew 15% year-over-year to $2.07 billion, above analysts' estimates of $1.99 billion.

On Monday Steel Dynamics announced it will purchase Severstal's Columbus mini-mill for about $1.63 billion. The plant is expected to increase the company's annual steel shipping capacity by 40% to 11 tons.

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

"We rate STEEL DYNAMICS INC (STLD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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