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Nucor (NUE) Outperforms Broader Market: What You Need to Know

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In the latest market close, Nucor (NUE - Free Report) reached $190.95, with a +0.61% movement compared to the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.

The steel company's shares have seen an increase of 2.27% over the last month, not keeping up with the Basic Materials sector's gain of 4.37% and the S&P 500's gain of 2.97%.

Investors will be eagerly watching for the performance of Nucor in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 22, 2024. On that day, Nucor is projected to report earnings of $3.84 per share, which would represent a year-over-year decline of 13.71%. At the same time, our most recent consensus estimate is projecting a revenue of $8.14 billion, reflecting a 6.53% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $13.54 per share and revenue of $32.12 billion, which would represent changes of -24.78% and -7.47%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nucor. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Nucor currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Nucor is currently being traded at a Forward P/E ratio of 14.02. This expresses a premium compared to the average Forward P/E of 9.94 of its industry.

The Steel - Producers industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 179, positioning it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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