Nucor (NUE) closed at $146.40 in the latest trading session, marking a -1.57% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.69%. Elsewhere, the Dow saw a downswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.82%.
Shares of the steel company have appreciated by 8.58% over the course of the past month, underperforming the Basic Materials sector's gain of 9.38%, and outperforming the S&P 500's gain of 3.79%.
The upcoming earnings release of Nucor will be of great interest to investors. The company is predicted to post an EPS of $2.49, indicating a 67.11% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.36 billion, indicating a 12.28% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.25 per share and revenue of $32.39 billion, indicating changes of -7.3% and +5.4%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Nucor should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. At present, Nucor boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Nucor currently has a Forward P/E ratio of 18.02. This denotes a premium relative to the industry average Forward P/E of 12.64.
Also, we should mention that NUE has a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Steel – Producers industry stood at 0.74 at the close of the market yesterday.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 20% of all 250+ industries.
