Nucor (NUE) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Nucor (NUE) closed at $106.04, marking a -1.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the steel company had lost 16.18% over the past month, lagging the Basic Materials sector's loss of 11.11% and the S&P 500's loss of 3.49% 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 $8.65, up 71.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.42 billion, up 29.94% from the prior-year quarter.
NUE's full-year Zacks Consensus Estimates are calling for earnings of $29.75 per share and revenue of $42.29 billion. These results would represent year-over-year changes of +28.45% and +15.93%, respectively.
Any recent changes to analyst estimates for Nucor should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.55% higher within the past month. Nucor currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Nucor is currently trading at a Forward P/E ratio of 3.62. This valuation marks a premium compared to its industry's average Forward P/E of 2.85.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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