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Here's Why You Should Add Nucor (NUE) Stock to Your Portfolio
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Nucor Corporation’s (NUE - Free Report) stock looks promising at the moment. The steel giant is benefiting from demand strength across its end-markets and higher domestic steel prices. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Nucor has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let’s take a look into the factors that make Nucor an attractive choice for investors right now.
An Outperformer
Shares of Nucor have rallied 114.3% year to date against the 29.6% rise of its industry. It has also outperformed the S&P 500’s 22.3% rise over the same period.
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Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Nucor for the current year has increased around 7.2%. The consensus estimate for fourth-quarter 2021 has also been revised 11.2% upward over the same time frame.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Nucor is currently pegged at $22.82, reflecting an expected year-over-year growth of 583.2%. Moreover, earnings are expected to register a 463.4% growth in the fourth quarter.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Nucor is 40.1%, above the industry’s level of 33.6%.
Upbeat Prospects
Nucor is gaining from continued strength in the non-residential construction market. It is also seeing healthy demand in the automotive market despite the ongoing semiconductor crunch. The company is also witnessing strength in heavy equipment and improved conditions in energy markets. Higher demand is driving its shipments.
The company is also benefiting from higher steel prices. Its average sales price surged 86% year over year in the third quarter. Higher domestic steel prices are acting as a catalyst for Nucor’s steel mills unit.
U.S. steel prices have hit record levels this year after plunging to pandemic-led multi-year lows in August 2020. The strong rebound has been driven by strong end-market demand, tight supply conditions and higher raw material costs.
The company’s profits rose year over year in the third quarter of 2021, thanks to strong demand and higher steel prices. The third quarter marked the highest quarterly earnings in its history.
Nucor, in its third-quarter call, said that it envisions continued strong results in the fourth quarter with earnings potentially exceeding the record-level set in the third quarter. The company expects strong demand across most end-use markets to continue into 2022. Nucor expects improved profitability in the steel mills segment in the fourth quarter on a sequential comparison basis on additional earnings growth at its sheet and plate mills.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 10.6% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 40% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 6.8% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 114% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 170% in a year.
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Here's Why You Should Add Nucor (NUE) Stock to Your Portfolio
Nucor Corporation’s (NUE - Free Report) stock looks promising at the moment. The steel giant is benefiting from demand strength across its end-markets and higher domestic steel prices. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Nucor has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors.
Let’s take a look into the factors that make Nucor an attractive choice for investors right now.
An Outperformer
Shares of Nucor have rallied 114.3% year to date against the 29.6% rise of its industry. It has also outperformed the S&P 500’s 22.3% rise over the same period.
Estimates Northbound
Earnings estimate revisions have the greatest impact on stock prices. Over the past two months, the Zacks Consensus Estimate for Nucor for the current year has increased around 7.2%. The consensus estimate for fourth-quarter 2021 has also been revised 11.2% upward over the same time frame.
Solid Growth Prospects
The Zacks Consensus Estimate for earnings for the current year for Nucor is currently pegged at $22.82, reflecting an expected year-over-year growth of 583.2%. Moreover, earnings are expected to register a 463.4% growth in the fourth quarter.
Superior Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12-months for Nucor is 40.1%, above the industry’s level of 33.6%.
Upbeat Prospects
Nucor is gaining from continued strength in the non-residential construction market. It is also seeing healthy demand in the automotive market despite the ongoing semiconductor crunch. The company is also witnessing strength in heavy equipment and improved conditions in energy markets. Higher demand is driving its shipments.
The company is also benefiting from higher steel prices. Its average sales price surged 86% year over year in the third quarter. Higher domestic steel prices are acting as a catalyst for Nucor’s steel mills unit.
U.S. steel prices have hit record levels this year after plunging to pandemic-led multi-year lows in August 2020. The strong rebound has been driven by strong end-market demand, tight supply conditions and higher raw material costs.
The company’s profits rose year over year in the third quarter of 2021, thanks to strong demand and higher steel prices. The third quarter marked the highest quarterly earnings in its history.
Nucor, in its third-quarter call, said that it envisions continued strong results in the fourth quarter with earnings potentially exceeding the record-level set in the third quarter. The company expects strong demand across most end-use markets to continue into 2022. Nucor expects improved profitability in the steel mills segment in the fourth quarter on a sequential comparison basis on additional earnings growth at its sheet and plate mills.
Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Intrepid Potash, Inc. (IPI - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nutrien has an expected earnings growth rate of 212.2% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 10.6% upward over the last 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 40% in a year.
AdvanSix has a projected earnings growth rate of 196.9% for the current year. ASIX's consensus estimate for the current year has been revised 6.8% upward over the last 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 114% in a year.
Intrepid Potash has a projected earnings growth rate of 244.7% for the current year. The consensus estimate for IPI’s current year has been revised 3.3% upward over the last 60 days.
Intrepid Potash beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 132.9%, on average. IPI shares have surged around 170% in a year.