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Nucor (NUE) Invests in Electra to Strengthen Portfolio
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Nucor Corporation (NUE - Free Report) announced on Dec 8 that it invested in shares of a Colorado-based startup company, Electra. The investment will strengthen Nucor's position as a sustainability leader and expand on the innovation that has already resulted in cleaner steel manufacturing in the United States.
Electra transforms low-grade iron ores into high-purity iron with renewable energy. Utilizing zero-carbon intermittent electricity, the company converts commercial and low-grade ores into Low-Temperature Iron. The iron produced can be turned into steel by electric arc furnaces, which are already in use and are responsible for 70% of American steel production.
The process developed by Electra produces zero-carbon-dioxide emissions. The startup uses renewable electricity to electrochemically convert iron ore into pure iron at 140 degrees Fahrenheit.
Based in Charlotte, NC, NUE is one of the cleanest steelmakers in the world that uses primarily recycled scrap as raw material. It also produces direct reduced iron (DRI) that is further used in its steel mills. With the first electric arc furnace, Nucor revolutionized the steel industry. It believes that it can develop and scale up zero-carbon iron products.
Over the years, Nucor has expanded through acquisitions and entering markets. It has been looking for new and innovative ways to assist its customers in meeting their sustainability goals. Nucor will keep working on its strategy to invest capital in companies that will benefit the company and the entire industry.
In the third quarter of 2022, Nucor’s raw material and steel product units’ earnings increased from the prior-year figures. The raw material unit gained from higher profits from the company's direct reduced iron facilities, offset by lower profits from scrap brokerage and processing operations. However, its steel mills unit faced a decline due to metal margin contraction and lower shipping volumes.
Nucor reported net earnings of $6.50 per share in the third quarter. This marked a decline from the prior-year quarter’s net earnings of $7.28 per share. Net sales for the quarter were $10.5 billion, up from the year-ago revenues of $10.3 billion.
Price Performance
Shares of Nucor have gained 28.2% over a year compared with the industry’s growth of 2.6%.
Bunge Limited has an expected earnings growth rate of 7.4% for the current year. Its earnings estimates for 2022 are pegged at $13.89 per share. BG’s earnings estimates have been revised 9.3% upward in the past 60 days. It has a trailing four-quarter average surprise of 18.7%. The stock has gained 8.7% in a year.
Reliance Steel expects earnings of $28.71 for the current year, indicating a year-over-year growth rate of 29.8% . The consensus estimate for RS’s earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 30.9% in a year.
Innospec has projected a year-over-year earnings growth rate of 30.4% for the current year. The Zacks Consensus Estimate for the company’s current-year earnings is pegged at $6.26. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 21.9% in a year.
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Nucor (NUE) Invests in Electra to Strengthen Portfolio
Nucor Corporation (NUE - Free Report) announced on Dec 8 that it invested in shares of a Colorado-based startup company, Electra. The investment will strengthen Nucor's position as a sustainability leader and expand on the innovation that has already resulted in cleaner steel manufacturing in the United States.
Electra transforms low-grade iron ores into high-purity iron with renewable energy. Utilizing zero-carbon intermittent electricity, the company converts commercial and low-grade ores into Low-Temperature Iron. The iron produced can be turned into steel by electric arc furnaces, which are already in use and are responsible for 70% of American steel production.
The process developed by Electra produces zero-carbon-dioxide emissions. The startup uses renewable electricity to electrochemically convert iron ore into pure iron at 140 degrees Fahrenheit.
Based in Charlotte, NC, NUE is one of the cleanest steelmakers in the world that uses primarily recycled scrap as raw material. It also produces direct reduced iron (DRI) that is further used in its steel mills. With the first electric arc furnace, Nucor revolutionized the steel industry. It believes that it can develop and scale up zero-carbon iron products.
Over the years, Nucor has expanded through acquisitions and entering markets. It has been looking for new and innovative ways to assist its customers in meeting their sustainability goals. Nucor will keep working on its strategy to invest capital in companies that will benefit the company and the entire industry.
In the third quarter of 2022, Nucor’s raw material and steel product units’ earnings increased from the prior-year figures. The raw material unit gained from higher profits from the company's direct reduced iron facilities, offset by lower profits from scrap brokerage and processing operations. However, its steel mills unit faced a decline due to metal margin contraction and lower shipping volumes.
Nucor reported net earnings of $6.50 per share in the third quarter. This marked a decline from the prior-year quarter’s net earnings of $7.28 per share. Net sales for the quarter were $10.5 billion, up from the year-ago revenues of $10.3 billion.
Price Performance
Shares of Nucor have gained 28.2% over a year compared with the industry’s growth of 2.6%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Bunge Limited (BG - Free Report) , Reliance Steel (RS - Free Report) , and Innospec (IOSP - Free Report) . While BG currently flaunts a Zacks Rank #1 (Strong Buy), RS and IOSP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bunge Limited has an expected earnings growth rate of 7.4% for the current year. Its earnings estimates for 2022 are pegged at $13.89 per share. BG’s earnings estimates have been revised 9.3% upward in the past 60 days. It has a trailing four-quarter average surprise of 18.7%. The stock has gained 8.7% in a year.
Reliance Steel expects earnings of $28.71 for the current year, indicating a year-over-year growth rate of 29.8% . The consensus estimate for RS’s earnings for the current year has been revised 0.06% upward in the past 60 days. It has a trailing four-quarter average surprise of 13.6% on average. RS has gained 30.9% in a year.
Innospec has projected a year-over-year earnings growth rate of 30.4% for the current year. The Zacks Consensus Estimate for the company’s current-year earnings is pegged at $6.26. Earnings estimates have been revised 5.6% upward in the past 60 days. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have gained 21.9% in a year.