HomeMarket NewsInsteel Industries (IIIN): Today's Notable Decline Insteel Industries (IIIN): Today’s Notable Decline By Ron Finklestien October 24, 2024 Today's Market Recap Daily Market Recaps (no fluff) always free Table of Contents hide 1 Insteel Reports Underwhelming Q3 Results 2 EPS Estimates for Insteel on the Decline 3 Conclusion 4 5 Stocks Set to Double </noscript><iframe class="lazy" allow="autoplay; encrypted-media" allowfullscreen="" frameborder="0" height="315" src="" data-src="https://www.youtube.com/watch?v=LzYq6ufQsDk" width="560"> Insteel Industries IIIN is among the largest manufacturers of steel wire reinforcing products in the United States. However, the company has faced challenges in achieving significant growth. Calling Insteel’s stock a value trap might be premature, but IIIN shares have experienced a decline of over 25% this year. With potential risks still ahead, Insteel’s stock currently holds a Zacks Rank #5 (Strong Sell) designation, making it the Bear of the Day. Image Source: Zacks Investment Research Insteel Reports Underwhelming Q3 Results Insteel’s stock took a hit of more than 10% last Thursday following its disappointing third-quarter results. The company posted an EPS of $0.24, matching the Zacks Consensus but down from $0.29 a share compared to the same period last year. Investor confidence was further shaken as Q3 sales declined by 15% year-over-year to $134.4 million, falling short of the $140.4 million estimate by 4%. This decline stemmed from decreased steel shipments and dropping average selling prices (ASP). Image Source: Zacks Investment Research EPS Estimates for Insteel on the Decline Earnings estimate revisions have taken a nosedive for Insteel’s current fiscal 2025 and FY26, dropping by 49% and 28% respectively over the past week. This recent trend contributes to the continued decline in IIIN shares and dilutes Insteel’s forward P/E valuation of 26.5X. See also Comparing AI Investments: Microsoft vs. Lumen Technologies Image Source: Zacks Investment Research Conclusion Currently, it’s advisable to avoid Insteel’s stock, particularly given the significant decline in earnings outlook. Although IIIN trades at less than 1X sales, suggesting potential value, it is starting to resemble a typical value trap. 5 Stocks Set to Double Each of these stocks has been selected by a Zacks expert as a promising candidate to potentially gain over 100% in 2024. While not every selection will succeed, past recommendations have achieved returns of +143.0%, +175.9%, +498.3%, and even +673.0%. Many of these stocks are currently flying under the radar, providing a unique opportunity for early investment. Discover These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Download the report on 5 Stocks Set to Double for free. Insteel Industries, Inc. (IIIN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Do you want a daily market summary with no fluff? Simple Straightforward Daily Stock Market Recaps Sent for free,every single trading day: Read Now Explore More “Two Promising Energy Stocks Set for a... “Unleashing Quantum Potential: 3 Stocks Poised for... Wolfspeed (WOLF) Attracts Significant Investment to Fuel... Three Health Care Stocks Poised for Significant... Simple Straightforward Daily Stock Market Recaps Get institutional-level analysis to take your trading to the next level, sign up for free and become apart of the community. Read Now Related Articles Market News “Top Stock to Consider Following TSMC’s Impressive Earnings Success” October 24, 2024 Market News “Top 3 Undervalued Dividend Stocks Worth Your Attention” October 24, 2024 Market News Billionaire Ken Griffin Reduces Citadel’s Nvidia Holdings by 79% to Invest... October 24, 2024 Market News “Analyzing the Impact of Trump’s Social Security Plan: Could Benefits Drop... October 24, 2024
