Nucor (NUE) Falls More Steeply Than Broader Market: What Investors Need to Know
Nucor (NUE) ended the recent trading session at $174.04, demonstrating a -0.66% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq decreased by 0.56%.
Prior to today's trading, shares of the steel company had gained 3.07% over the past month. This has lagged the Basic Materials sector's gain of 7.51% and the S&P 500's gain of 5.24% in that time.
The investment community will be paying close attention to the earnings performance of Nucor in its upcoming release. The company is slated to reveal its earnings on January 29, 2024. It is anticipated that the company will report an EPS of $2.93, marking a 40.08% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.54 billion, indicating a 13.54% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.78 per share and revenue of $34.55 billion. These totals would mark changes of -38.24% and -16.77%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Nucor. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% decrease. Nucor is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Nucor has a Forward P/E ratio of 9.86 right now. Its industry sports an average Forward P/E of 9.83, so one might conclude that Nucor is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Nucor Corporation (NUE) : Free Stock Analysis Report
