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Nucor (NUE) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Nucor (NUE - Free Report) closed at $106.25, marking a -1.59% move from the previous day. This move lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.

Prior to today's trading, shares of the steel company had lost 18.49% over the past month. This has lagged the Basic Materials sector's loss of 15.74% and the S&P 500's loss of 7.99% in that time.

Nucor will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.65, up 71.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.42 billion, up 29.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $29.75 per share and revenue of $42.29 billion. These totals would mark changes of +28.45% and +15.93%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Nucor. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Nucor is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Nucor is currently trading at a Forward P/E ratio of 3.63. This represents a premium compared to its industry's average Forward P/E of 2.8.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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