In the latest trading session, Olympic Steel (ZEUS) closed at $49.28, marking a -0.02% move from the previous day. This change was narrower than the S&P 500’s 0.28% loss on the day. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq lost 6.73%.
Prior to today’s trading, shares of the steel maker had gained 25.17% over the past month. This has outpaced the Basic Materials sector’s loss of 1.67% and the S&P 500’s gain of 2.48% in that time.
Investors will be hoping for strength from Olympic Steel as it approaches its next earnings release, which is expected to be February 23, 2023. In that report, analysts expect Olympic Steel to post earnings of $0.21 per share. This would mark a year-over-year decline of 92.47%. Our most recent consensus estimate is calling for quarterly revenue of $578.9 million, down 7.32% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Olympic Steel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 20.64% higher. Olympic Steel is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Olympic Steel is currently trading at a Forward P/E ratio of 18.74. This represents a premium compared to its industry’s average Forward P/E of 10.87.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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