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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 $149.47, moving -0.68% from the previous trading session. This change lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the steel company had gained 14.89% in the past month. In that same time, the Basic Materials sector gained 9.2%, while the S&P 500 gained 6.02%.

Wall Street will be looking for positivity from Nucor as it approaches its next earnings report date. In that report, analysts expect Nucor to post earnings of $7.39 per share. This would mark year-over-year growth of 138.39%. Our most recent consensus estimate is calling for quarterly revenue of $9.99 billion, up 42.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $20.32 per share and revenue of $37.91 billion. These totals would mark changes of -12.26% and +3.92%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Nucor. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 6.51% higher. Nucor is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Nucor's current valuation metrics, including its Forward P/E ratio of 7.41. For comparison, its industry has an average Forward P/E of 4.53, which means Nucor is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.

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


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