TimkenSteel (TMST) Outpaces Stock Market Gains: What You Should Know

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TimkenSteel (TMST) closed the most recent trading day at $13.95, moving +1.68% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.2%.

Prior to today’s trading, shares of the maker of steel large bars and seamless mechanical tubing had gained 4.89% over the past month. This has outpaced the Basic Materials sector’s gain of 4.64% and lagged the S&P 500’s gain of 5.66% in that time.

Wall Street will be looking for positivity from TMST as it approaches its next earnings report date. This is expected to be November 4, 2021. In that report, analysts expect TMST to post earnings of $0.66 per share. This would mark year-over-year growth of 273.68%. Meanwhile, our latest consensus estimate is calling for revenue of $330.2 million, up 60.37% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.42 per share and revenue of $1.25 billion, which would represent changes of +360.22% and +50.65%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TMST. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.02% lower within the past month. TMST currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that TMST has a Forward P/E ratio of 5.67 right now. This represents a premium compared to its industry’s average Forward P/E of 4.52.

The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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