🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Why Steel Dynamics (STLD) Could Be A Top Value Stock Pick

Published 07/12/2016, 08:56 AM
Updated 10/23/2024, 11:45 AM
STLD
-

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Steel Dynamics Inc. (NASDAQ:STLD) .

Steel Dynamics in Focus

STLD may be an interesting play thanks to its forward PE of 14.73, its P/S ratio of 0.89, and its decent dividend yield 2.1%. These factors suggest that Steel Dynamics is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that STLD has decent revenue metrics to back up its earnings.

But before you think that Steel Dynamics is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 14.2% in the past 30 days, thanks to 6 upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push STLD to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. So really, Steel Dynamics is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.



STEEL DYNAMICS (STLD): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
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.