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

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Nucor (NUE - Free Report) closed the most recent trading day at $68.91, moving -0.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.09%.

Investors will be hoping for strength from NUE as it approaches its next earnings release. In that report, analysts expect NUE to post earnings of $2.94 per share. This would mark year-over-year growth of 196.97%. Meanwhile, our latest consensus estimate is calling for revenue of $7.5 billion, up 33.36% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.36 per share and revenue of $27.04 billion, which would represent changes of +90.42% and +34.24%, respectively, from the prior year.

Any recent changes to analyst estimates for NUE should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 43.58% higher. NUE is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, NUE is currently trading at a Forward P/E ratio of 14.69. Its industry sports an average Forward P/E of 9.47, so we one might conclude that NUE is trading at a premium comparatively.

Also, we should mention that NUE has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Steel - Producers stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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