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Nucor (NUE) Wraps Up Buyout of Hannibal for $370 Million

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Nucor Corporation (NUE - Free Report) recently announced the completion of its acquisition of Hannibal Industries, Inc. — one of the leading national providers of steel racking solutions. The transaction was closed for a cash value of $370 million. The company purchased 100% of Hannibal’s outstanding shares from its Employee Stock Ownership Plan.

Nucor is enthusiastic about the transaction. It stated that the addition of steel racking solutions to its portfolio enables it to extend services to customers in the warehouse and distribution market and also supplements its existing product capabilities in the domain.

Shares of Nucor have appreciated 162.9% in a year, outperforming the industry’s rise of 123.4%. The estimated earnings growth rate for the company for the current year is pegged at 489.2%.

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In the second quarter, the company’s earnings were a record $5.04 per share, which 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 driven mainly 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) , Ternium S.A. (TX - Free Report) and Aperam S.A. (APEMY - Free Report) , each flaunting 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 182.1% over the past year.

Ternium has a projected earnings growth rate of 425.8% for the current year. The company’s shares have skyrocketed 209.2% over the past year.

Aperam has a projected earnings growth rate of 429.8% for the current year. The company’s shares have climbed 96% over the past year.

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