Steel Dynamics said third-quarter earnings are on track to surpass last quarter's record, easily surpassing analyst estimates. Better still, Q4 earnings should set another record. STLD stock rose, joined by U.S. Steel stock and the rest of the group.

The Fort Wayne, Ind., steelmaker said adjusted Q3 EPS should come in between $4.88 and $4.92. Analysts were expecting $4.29, according to Zack's Investment Research. The guidance excludes 10 cents per share in costs tied to the Sinton, Texas, flat roll steel mill construction.

Steel Dynamics attributed the record results to low inventories and strong demand from the automotive, construction, and industrial sectors continuing to lead the momentum. "The company believes this momentum will continue, resulting in even stronger fourth quarter results."

Target Hikes For STLD Stock, U.S. Steel Stock

Just ahead of the Steel Dynamics news on Wednesday, Deutsche Bank analyst Sathish Kasinathan raised priced targets for the group, saying investors have sold steel stocks prematurely "to avoid getting involved at the cyclical peak."

Kasinathan hiked his STLD stock target to 98 from 72 and Nucor to 130 from 100. Deutsche Bank also lifted its U.S. Steel stock target to 50 from 38.

STLD Stock, X Stock Near Key Level

STLD stock climbed 5% to 65.04, pennies above its 50-day moving average. STLD stock peaked at 74.37 on Aug. 13, after breaking above a 63.28 buy point from a double-bottom base on July 29. But momentum faded, and STLD stock closed below its 50-day line on Monday and Tuesday, closing at 61.97, round-tripping the double-digit gains.

A move back above the 50-day line would be positive, but Steel Dynamics stock might need to move a little higher before offering an early entry.

STLD stock has a 91 Relative Strength Rating, meaning it has outperformed 91% of all stocks over the past 12 months. STLD stock has a 99 IBD Composite Rating, a single score combining fundamental and technical metrics.

U.S. Steel stock, Nucor and Cleveland-Cliffs also slipped below their 50-day lines this week, but could be poised to retake the key technical level. U.S. Steel stock rose 5%, Nucor 3.2% and CLF stock 4.3%.

NUE stock is back above its 50-day line, U.S. Steel is right on it, while Cleveland-Cliffs is still below that key level.