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TimkenSteel (TMST) Gains As Market Dips: What You Should Know

Zacks Equity Research
·2 min read

TimkenSteel (TMST) closed the most recent trading day at $14.42, moving +0.56% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the maker of steel large bars and seamless mechanical tubing had lost 13.72% over the past month. This has lagged the Basic Materials sector's loss of 1.41% and the S&P 500's loss of 7.66% in that time.

TimkenSteel will be looking to display strength as it nears its next earnings release. On that day, TimkenSteel is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 5900%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $315.5 million, up 49.38% from the year-ago period.

Any recent changes to analyst estimates for TimkenSteel should also be noted by investors. 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.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TimkenSteel is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TimkenSteel currently has a Forward P/E ratio of 4.7. Its industry sports an average Forward P/E of 4.76, so we one might conclude that TimkenSteel is trading at a discount comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research