Nucor (NUE) closed the most recent trading day at $106.31, moving -1.18% from the previous trading session. This change lagged the S&P 500's daily gain of 0.47%.
Prior to today's trading, shares of the steel company had gained 12.07% over the past month. This has outpaced the Basic Materials sector's loss of 2.29% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from NUE as it approaches its next earnings report date. On that day, NUE is projected to report earnings of $4.21 per share, which would represent year-over-year growth of 1069.44%. Meanwhile, our latest consensus estimate is calling for revenue of $8.42 billion, up 94.54% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.02 per share and revenue of $29.13 billion, which would represent changes of +259.88% and +44.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for NUE. 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. 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. Within the past 30 days, our consensus EPS projection has moved 3.65% higher. NUE is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, NUE is currently trading at a Forward P/E ratio of 8.95. Its industry sports an average Forward P/E of 7.38, so we one might conclude that NUE is trading at a premium comparatively.
It is also worth noting that NUE currently has a PEG ratio of 0.75. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 0.53 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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