Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Schnitzer (SCHN) Raised To Strong Buy On Upbeat Prospects

ByZacks Investment Research
Published 08/15/2017, 09:57 PM
Updated 07/09/2023, 06:31 AM
RDUS
-
KRO
-
BASFY
-
CC
-
On Aug 15, steel manufacturer Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) was upgraded to a Zacks Rank #1 (Strong Buy). Going by the Zacks model, companies sporting a Zacks Rank #1 have higher chances of outperforming the broader market.
Why the Upgrade?
Estimates for Schnitzer have been moving north over the last 60 days. The Zacks Consensus Estimate for the current fiscal has increased 57.1% to $1.43 per share over this period. Moreover, the Zacks Consensus Estimate for fiscal 2018 has moved up 19.4% over the same time frame to $1.60.
Schnitzer has also delivered a positive average earnings surprise of 16.13% over the trailing four quarters.
Moreover, Schnitzer has significantly outperformed the industry over the last three months. The company’s shares have moved up around 30% over this period, compared with roughly 11% gain recorded by the industry.
Schnitzer reported a net income of $17 million or 60 cents per share in the third quarter of fiscal 2017, higher than earnings of $11 million or 40 cents recorded a year ago. The company’s adjusted earnings came in at 56 cents per share, in line with the Zacks Consensus Estimate. Revenues rose roughly 36% year over year to $477 million in the third quarter, on the back of higher sales volumes and average net selling prices.
According to Schnitzer, results in the reported quarter can be attributed to continued focus on profitable growth while operating income were driven by multi-year productivity initiatives. The company continued to strengthen the balance sheet by generating robust operating cash flows that enabled it to reduce debt, invest in operations and return capital to shareholders.
Notably, Schnitzer has integrated the operations of Auto and Metals Recycling (AMR) unit's Oregon metals recycling with the Steel Manufacturing Business (SMB) segment, forming a new division, Cascade Steel and Scrap (CSS). The move is aimed at enhancing its flexibility, generating internal synergies, improving customer service and to more effectively respond to changes across recycling and steel production market. Moving ahead, the company expects to report the results of CSS operations as a single reportable segment starting in the fourth quarter of fiscal 2017.
Schnitzer Steel Industries, Inc. Price and Consensus

Schnitzer Steel Industries, Inc. Price and Consensus | Schnitzer Steel Industries, Inc. Quote

Other stocks to consider

Other top-ranked companies in the basic materials space include BASF SE (OTC:BASFY) , The Chemours Company (NYSE:CC) and Kronos Worldwide (NYSE:KRO) . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BASF has an expected long-term earnings growth of 8.6%.

Chemours has an expected long-term earnings growth of 15.5%.

Kronos Worldwide has an expected long-term earnings growth of 5%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



BASF SE (BASFY): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Chemours Company (The) (CC): Free Stock Analysis Report

Schnitzer Steel Industries, Inc. (SCHN): Free Stock Analysis Report

Original post

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.