Nucor Corporation ( NUE Quick Quote NUE - Free Report) recently announced its plans to add a blast and prime line at its greenfield steel plate mill that is currently under construction in Brandenburg, KY. With an annual capacity of around 120,000 tons, the line will provide Nucor Plate Group with broader offerings for the customers requiring wider and thicker plate products. The plate mill is scheduled to start in the fourth quarter of 2022. Nucor’s $1.7 billion capital investment will enable the mill to employ 400 members when fully operational. The mill's location in the middle of the largest U.S. steel plate-consuming region will enable it to manufacture 97% of the domestic consumption of plate products. The company noted that the blast and prime line will better equip it to serve clients in key markets like the country’s military, infrastructure, heavy equipment, offshore wind and other energy products. Nucor’s shares have soared 111.4% over the past year compared with the industry’s 48% rise. The company’s estimated earnings growth rate for the current year is pegged at 583.2%. Image Source: Zacks Investment Research
On its third-quarter earnings call, Nucor stated that it expects continued strong results in the fourth quarter, with earnings exceeding the record-level set in the third quarter. Also, the company expects strong demand across most end-use markets to continue in 2022.
Nucor expects profitability to improve in the steel mills segment in the fourth quarter on a sequential basis on additional earnings growth at its sheet and plate mills. It also expects higher profitability in the steel products segment in the fourth quarter. However, earnings in the raw materials segment are forecast to decline sequentially in the fourth quarter due to margin compression at its direct reduced iron facilities. Zacks Rank & Other Key Picks
Nucor currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks from the basic materials space include Univar Solutions Inc. ( UNVR Quick Quote UNVR - Free Report) and AdvanSix Inc. ( ASIX Quick Quote ASIX - Free Report) sporting a Zacks Rank #1 (Strong Buy), and Celanese Corporation ( CE Quick Quote CE - Free Report) carrying a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank stocks here Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for the current year has been revised 9% upward over the past 60 days. Univar beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 24.1%, on average. UNVR’s shares have rallied 53.8% over a year. AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for the current year has been revised 14.1% upward over the last 60 days. AdvanSix beat the Zacks Consensus Estimate for earnings in all the four trailing quarters with an earnings surprise of 47%, on average. ASIX’s shares have also surged 158.7% over a year. Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for the current year has been revised 9.1% upward over the last 60 days. Celanese beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters and pulled off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 24.7% over a year.