Steel Dynamics, Inc. (STLD), headquartered in Fort Wayne, Indiana, functions as a leading steel producer and metal recycler. Valued at $22.7 billion by market cap, the company’s products include flat-rolled steel sheet, engineered bar, special-bar-quality, and structural beams. It also recycles scrap metals and manufactures non-residential building components such as steel joists, girders, trusses, and decks for construction projects.
Shares of this leading domestic steel producer and metals recycler have underperformed the broader market over the past year. STLD has gained 12.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 13.2%. However, in 2025, STLD stock is up 36.2%, surpassing SPX’s 14.5% rise on a YTD basis.
Narrowing the focus, STLD’s underperformance is also apparent compared to the VanEck Steel ETF (SLX). The exchange-traded fund has gained about 16% over the past year. However, STLD’s returns on a YTD basis outshine the ETF’s 34.9% gains over the same time frame.
On Oct. 20, STLD shares closed up by 2.5% after reporting its Q3 results. Its EPS of $2.74 surpassed Wall Street expectations of $2.66. The company’s revenue was $4.8 billion, topping Wall Street forecasts of $4.7 billion.
For the current fiscal year, ending in December, analysts expect STLD’s EPS to fall 13.8% to $8.48 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 13 analysts covering STLD stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is less bullish than a month ago, with a “Strong Buy” rating overall, consisting of nine analysts suggesting a “Strong Buy.”
On Nov. 4, UBS analyst Andrew Jones downgraded STLD to a “Neutral” rating with a price target of $165, implying a potential upside of 6.2% from current levels.
The mean price target of $167.42 represents a 7.7% premium to STLD’s current price levels. The Street-high price target of $180 suggests an upside potential of 15.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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