Nucor (NUE) Dips More Than Broader Markets: What You Should Know
Nucor (NUE) closed at $108.85 in the latest trading session, marking a -1.49% move from the prior day. This move lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the steel company had lost 20% over the past month. This has lagged the Basic Materials sector's loss of 6.82% and the S&P 500's loss of 10.24% in that time.
Investors will be hoping for strength from Nucor as it approaches its next earnings release. The company is expected to report EPS of $7.97, up 9.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.61 billion, up 2.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.08 per share and revenue of $42.15 billion. These totals would mark changes of +34.2% and +15.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Nucor. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Nucor is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Nucor has a Forward P/E ratio of 3.56 right now. Its industry sports an average Forward P/E of 2.7, so we one might conclude that Nucor is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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