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Nucor (NUE) Wraps Up Buyout of Insulated Metal Panels Business

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Nucor Corporation (NUE - Free Report) recently announced the completion of its acquisition of Cornerstone Building Brands' insulated metal panels (IMP) business. Subject to customary adjustments, the cash purchase price of the transaction was roughly $1 billion.

Along with the company’s management team, the CENTRIA and Metl-Span brands acquired from Cornerstone Building Brands are now part of the newly created Insulated Panel Group, including the company's existing IMP business, TrueCore.

Nucor is enthusiastic about the acquisition. It noted that the addition of the two brands will enable it provide its customers with a wide range of products to cater to premium architectural applications and the fast-growing cold storage and warehousing markets.

Shares of Nucor have appreciated 169.8% in a year compared with the industry’s rise of 142.1%. The estimated earnings growth rate for the company for the current year is pegged at 455.7%.

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In the second quarter, the company’s earnings were a record $5.04 per share. The bottom line also beat the Zacks Consensus Estimate of $4.81. It raked in net sales of $8,789.2 million, increasing 103% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $8,311.9 million.

Nucor expects to report the highest quarterly earnings in its history in the third quarter, exceeding the record-level figure in the second quarter. Earnings are expected to be mainly driven by higher pricing and margins in the steel mills segment. The company also sees higher profitability in the steel mills segment with the biggest increase at sheet mills.

Zacks Rank & Other Stocks to Consider

Currently, Nucor sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the basic materials space include ArcelorMittal (MT - Free Report) , National Steel Company (SID - Free Report) and Aperam (APEMY - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

ArcelorMittal has a projected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up 190.1% over the past year.

National Steel has a projected earnings growth rate of 443.3.3% for the current year. The company’s shares have skyrocketed 241.1% over the past year.

Aperam has a projected earnings growth rate of 429.8% for the current year. The company’s shares have grown 97.3% over the past year.

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