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Nucor (NUE) Gains As Market Dips: What You Should Know

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Nucor (NUE - Free Report) closed the most recent trading day at $101.30, moving +2.57% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.04%.

Prior to today's trading, shares of the steel company had gained 24.07% over the past month. This has outpaced the Basic Materials sector's gain of 12.57% and the S&P 500's gain of 3.83% in that time.

The company is expected to report EPS of $3.87, up 975% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.42 billion, up 94.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.97 per share and revenue of $29.13 billion, which would represent changes of +228.44% and +44.64%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NUE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 39.58% higher within the past month. NUE is currently a Zacks Rank #1 (Strong Buy).

Investors should also note NUE's current valuation metrics, including its Forward P/E ratio of 9. This valuation marks a premium compared to its industry's average Forward P/E of 8.83.

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. The Steel - Producers was holding an average PEG ratio of 0.59 at yesterday's closing price.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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