Technical patterns as well as solid fundamentals lead us to forecast a rebound of Steel Dynamics security.
The company displays great growth potential and strong profitability. Upward revisions have been made on EPS in a two-year horizon. Net income for the ongoing fiscal year should advance by 70%. Analysts consensus target USD 26.7, which represents a real gain potential.
From a technical viewpoint, Steel Dynamics' shares are back to an important support area at USD 19.2, and also its bullish trend line. The fall registered on recent sessions represents a key entry point to aim a technical rebound with a target price at USD 21.35 and by extension USD 22.8.
According to fundamental and technical analysis, timing seems suitable for buying Steel Dynamics' shares. However a stop-loss order should be placed under the current midterm support.
Steel Dynamics, Inc. specializes in the manufacturing and marketing of carbon steel products. Net sales (including intragroup) break down by activity as follows:
- sale of steel products (66.2%): hot and cold rolled flat steel products, coated plates, beams, long commercial steels, rails, special profiles, etc.;
- treatment and processing of steel and metal scrap (21.3%);
- production of steel components for the non-residential construction industry (8%): frames, beams, joists, pilings, etc.;
- other (4.5%).