Valued at a market cap of $18.6 billion, Steel Dynamics, Inc. (STLD) is a steel producer and metal recycler. The Fort Wayne, Indiana-based company primarily makes and markets steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and STLD fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the steel industry. The company is known for its broad product portfolio, serving industries like construction, automotive, energy, and manufacturing. Additionally, it specializes in electric arc furnace (EAF) steelmaking, which is more cost-effective and environmentally friendly than traditional blast furnace methods. One of its key strengths is its vertically integrated business model, which spans steel production, metals recycling, and steel fabrication, providing operational efficiency and cost advantages.
This fabricated structural metal company is currently trading 20.3% below its 52-week high of $155.56, reached on Nov. 6, 2024. Shares of STLD have soared 8.7% over the past three months, outpacing the VanEck Steel ETF’s (SLX) 5.3% gain during the same time frame.
Moreover, on a six-month basis, shares of STLD are down 4.1%, outperforming SLX’s 12.9% loss. However, in the longer term, STLD has declined 16.9% over the past 52 weeks, lagging behind SLX’s 15.3% fall over the same time frame.
To confirm its bearish trend, STLD has been trading below its 200-day and 50-day moving averages since early March, with slight fluctuations.
On Mar. 24, STLD’s shares gained nearly 3.3% after UBS upgraded the stock to “Buy.” UBS cited the 25% tariffs on steel and aluminum imports as a key factor that can benefit domestic steelmakers like STLD, positioning them for stronger earnings momentum and sector-wide benefits.
On Jan. 22, STLD released its Q4 earnings. Shares of the company closed down by 1.5% as its results presented a mixed picture. Its revenue declined 8.5% year-over-year to $3.9 billion and missed the forecasted figure by 2.3%. Nonetheless, its profit of $1.36 per share topped the consensus estimate of $1.29. Moreover, the company expects a positive commercial environment for 2025, backed by declining steel imports and stable to growing North American steel demand. These factors might have helped stabilize investor sentiment.
STLD has outpaced its rival, Nucor Corporation (NUE), which declined 40.2% over the past 52 weeks and 21.6% on a six-month basis.
Given STLD’s recent outperformance relative to its industry peers, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 12 analysts covering it, and the mean price target of $148.27 suggests a 19.6% premium to its current levels.
