Fort Wayne, Indiana-based Steel Dynamics, Inc. (STLD) operates as a steel producer and metal recycler in the United States. With a market cap of $18.9 billion, Steel Dynamics operates through Steel Operations, Metals Recycling Operations, Steel Fabrication Operations, and Aluminum Operations segments.

The company has notably underperformed the broader market over the past year, but slightly outperformed in 2025. STLD stock has gained 8.2% over the past 52 weeks and 10% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 14.3% gains over the past year and 8.7% returns in 2025.

Narrowing the focus, Steel Dynamics has also underperformed the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 18.7% surge over the past 52 weeks and 14.8% gains on a YTD basis.

Steel Dynamics’ stock prices dropped 1.7% in the trading session following the release of its lackluster Q2 results on Jul. 21 and maintained a negative price trajectory for the next two trading sessions. Despite the federal government’s support for the industry and steel prices stabilizing at higher levels, the company’s net sales for the quarter dropped 1.5% year-over-year to $4.6 billion, missing the Street's expectations. Moreover, its adjusted EBITDA plunged 22.3% year-over-year to $553.4 million.

Meanwhile, its net income plunged 30.2% year-over-year to $298.7 million, and EPS of $2.01, missing the consensus estimates by approximately 2%.

For the full fiscal 2025, ending in December, analysts expect STLD to deliver an EPS of $9.33, down 5.2% year-over-year. Further, the company has a mixed earnings surprise history. While it has surpassed the Street’s bottom-line estimates thrice over the past four quarters, it missed the projections on one other occasion.

However, the stock has a consensus “Strong Buy” rating overall. Of the 13 analysts covering the STLD stock, opinions include nine “Strong Buys,” one “Moderate Buy,” and three “Holds.”

This configuration is slightly more optimistic than a month ago, when eight analysts gave “Strong Buy” recommendations.

On Jul. 14, JP Morgan (JPM) analyst Bill Peterson maintained a "Neutral" rating on STLD and raised the price target from $138 to $150.

As of writing, STLD’s mean price target of $149.33 represents a 19% premium to current price levels. Meanwhile, the street-high target of $155 suggests a notable 23.6% upside potential.