Here's Why Nucor (NUE) Gained But Lagged the Market Today
Nucor (NUE) closed the latest trading day at $192.30, indicating a +0.06% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.9%.
The steel company's stock has climbed by 2.81% in the past month, exceeding the Basic Materials sector's loss of 0.45% and lagging the S&P 500's gain of 3.85%.
Investors will be eagerly watching for the performance of Nucor in its upcoming earnings disclosure. In that report, analysts expect Nucor to post earnings of $3.84 per share. This would mark a year-over-year decline of 13.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.26 billion, down 5.16% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.47 per share and a revenue of $32.58 billion, indicating changes of -25.17% and -6.13%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Nucor. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 3.33% rise in the Zacks Consensus EPS estimate. Nucor currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Nucor is at present trading with a Forward P/E ratio of 14.27. This denotes a premium relative to the industry's average Forward P/E of 10.84.
The Steel - Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nucor Corporation (NUE) : Free Stock Analysis Report
