Schnitzer Steel (SCHN) Moves 7.1% Higher: Will This Strength Last?
Zacks Investment Research | Mar 12, 2021 03:05AM ET
Schnitzer Steel (SCHN) shares rallied 7.1% in the last trading session to close at $46.08. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 25.5% gain over the past four weeks.
Optimism over strengthening ferrous and nonferrous markets is driving the stock higher. The company is benefiting from strong demand for finished steel products and recycled metals and the transition to its new One Schnitzer operating model that increases its efficiency and improves productivity.
Price and Consensus
This recycler of ferrous and nonferrous scrap metal is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of +219.4%. Revenues are expected to be $597.1 million, up 35.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Schnitzer Steel, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SCHN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see Zacks Investment Research
Get The News You Want
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.