Nucor (NUE) Stock Sinks As Market Gains: Here's Why
Nucor (NUE) ended the recent trading session at $170.57, demonstrating a -0.87% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.1%.
The steel company's stock has climbed by 5.42% in the past month, exceeding the Basic Materials sector's gain of 3.98% and the S&P 500's gain of 2.75%.
Investors will be eagerly watching for the performance of Nucor in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 29, 2024. The company is expected to report EPS of $2.93, down 40.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.54 billion, down 13.54% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Nucor. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.96% rise in the Zacks Consensus EPS estimate. Nucor is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Nucor is holding a Forward P/E ratio of 13.66. This denotes a premium relative to the industry's average Forward P/E of 9.32.
The Steel - Producers industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nucor Corporation (NUE) : Free Stock Analysis Report
