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Nucor (NUE) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Nucor (NUE) closed at $113.99, marking a +1.26% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the steel company had lost 6.74% in the past month. In that same time, the Basic Materials sector lost 6.58%, while the S&P 500 lost 8.32%.

Investors will be hoping for strength from Nucor as it approaches its next earnings release. The company is expected to report EPS of $8.65, up 71.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.42 billion, up 29.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $29.75 per share and revenue of $42.29 billion. These totals would mark changes of +28.45% and +15.93%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nucor. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 3.95% higher. Nucor is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Nucor is holding a Forward P/E ratio of 3.78. This valuation marks a premium compared to its industry's average Forward P/E of 2.99.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.

To follow NUE in the coming trading sessions, be sure to utilize Zacks.com.


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