U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.35
    -0.08 (-0.07%)
     
  • Gold

    1,810.90
    +9.40 (+0.52%)
     
  • Silver

    19.83
    +0.16 (+0.80%)
     
  • EUR/USD

    1.0435
    -0.0048 (-0.46%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2108
    -0.0067 (-0.55%)
     
  • USD/JPY

    135.1590
    -0.5690 (-0.42%)
     
  • BTC-USD

    19,258.81
    -83.31 (-0.43%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.38 (-1.73%)
     

Nucor (NUE) to Construct Rebar Micro Mill in North Carolina

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Nucor Corporation NUE recently announced that it would construct a new rebar micro mill in Lexington, NC, situated in Davidson County. This will be the steel giant's third rebar micro mill, following current Nucor micro mills in Missouri and Florida.

The cost for the Nucor Steel Lexington mill is projected to be roughly $350 million. The mill would have an annual capacity of 430,000 tons. The mill is expected to employ around 200 full-time teammates once operational and create an additional 500 temporary jobs during the construction phase, which will likely take two years pending permit and regulatory approvals.

Nucor is one of the most sustainable steel producers globally, as it manufactures steel by recycling scrap metal into new steel products. Nucor steel bar products contain 97% recycled content. Rebar is used mainly in concrete reinforcement to construct roads, buildings, bridges and other structures.

Shares of Nucor have surged 95.2% in the past year compared with a 20.7% rise of the industry.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Last month, the company announced the outlook for first-quarter 2022. It anticipates new record first-quarter earnings in the range of $7.20-$7.30 per share. Earnings in the fourth quarter were $7.97 and the same in the prior-year quarter amounted to $3.10.

First-quarter earnings in the steel mill segment are likely to decline mainly due to the lower profitability of the sheet mills. The average realized selling prices in sheet have weakened even though end-market demand remains strong. The downside reflects higher import volumes and modest destocking.

The company expects 2022 to be a strong year driven by continued solid demand across most end markets and strength in its business model. The company is also taking price hike actions across the steel mills segment and expects profitability to improve.

Nucor Corporation Price and Consensus

Nucor Corporation Price and Consensus
Nucor Corporation Price and Consensus

Nucor Corporation price-consensus-chart | Nucor Corporation Quote

Zacks Rank & Other Key Picks

Nucor currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are The Mosaic Company MOS, AdvanSix Inc. ASIX and Allegheny Technologies Incorporated ATI.

Mosaic has a projected earnings growth rate of 131.2% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 32.7% upward in the past 60 days.

Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 129.2% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.

AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 72.6% in a year. The company sports a Zacks Rank #1.

Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 26% over a year.


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

Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report

The Mosaic Company (MOS) : Free Stock Analysis Report

AdvanSix (ASIX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research