2024-07-24 12:09:54 ET
Summary
- Steel Dynamics, Inc. has become more resilient despite YTD underperformance, with strong business model and shareholder value initiatives.
- The company's 2Q 2024 results exceeded expectations, showcasing management's ability to handle market fluctuations.
- Strong commitment to aggressive share repurchase programs means there is the potential for significant upside if the P/E ratio converges with the sector median.
- This is not a political endorsement article. Rather, it's an examination of the effects of a potential Trump administration on this strong operator.
Investment Thesis
I believe Steel Dynamics, Inc. ( STLD ) has become more resilient since I first bought shares in the company in 2022 (and despite EPS declining in this timeframe too). Despite a year-to-date ((YTD)) underperformance, up only 7.21% compared to broader market indices, I believe investors appear to be underestimating the company's strong business model amid a decelerating steel market.
Earlier this month, Steel Dynamics reported a nearly 50% decline in quarterly profits due to lower sale prices?. Despite these headwinds, the company maintained improved shareholder value initiatives, including buying back $309 million in shares and consistent dividend payments....
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Steel Dynamics: Trump Trade Stock