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Nucor (NUE) Gains But Lags Market: What You Should Know

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Zacks Equity Research
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In the latest trading session, Nucor (NUE) closed at $80.51, marking a +0.79% move from the previous day. This move lagged the S&P 500's daily gain of 1.44%.

Prior to today's trading, shares of the steel company had gained 26.95% over the past month. This has outpaced the Basic Materials sector's gain of 7.05% and the S&P 500's gain of 6.26% in that time.

Wall Street will be looking for positivity from NUE as it approaches its next earnings report date. In that report, analysts expect NUE to post earnings of $3.13 per share. This would mark year-over-year growth of 216.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.55 billion, up 34.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.86 per share and revenue of $28.28 billion. These totals would mark changes of +135.33% and +40.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NUE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 82.31% higher within the past month. NUE currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that NUE has a Forward P/E ratio of 10.17 right now. For comparison, its industry has an average Forward P/E of 9.32, which means NUE is trading at a premium to the group.

We can also see that NUE currently has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NUE's industry had an average PEG ratio of 0.67 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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