Back to top

Image: Bigstock

Nucor (NUE) Wraps Up Buyout of C.H.I. from KKR for $3 Billion

Read MoreHide Full Article

Nucor Corporation (NUE - Free Report) completed its purchase of C.H.I. Overhead Doors (“C.H.I.”) from KKR & Co. Inc. (“KKR”) for $3 billion. C.H.I. is a leading producer of overhead doors for residential and commercial markets in the United States and Canada.

C.H.I. produces overhead door products for residential and commercial applications and rolling steel and rubber doors for commercial and industrial customers. The entity can maintain minimal inventory levels and realize industry-leading fulfilment times while providing direct delivery to customers leveraging a highly diversified national customer network of professional garage door dealers.

Nucor stated that C.H.I. built a tremendous business with strong growth prospects that is a natural fit with its capabilities. The acquisition is expected to be immediately accretive to earnings in the first year of ownership.

Shares of Nucor have gained 16.7% in the past year against a 17.9% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Nucor recently announced guidance for the second quarter of 2022. The steel giant projects second-quarter earnings to be between $8.75 and $8.85 per share.

The company is seeing strong end-use market demand for steel and steel products and is confident that 2022 will be another year of robust earnings and cash flow for Nucor. The second quarter earnings are expected to be driven by higher profitability in the steel products segment, which continues to benefit from strong demand in nonresidential construction markets.

Nucor Corporation Price and Consensus

 

Nucor Corporation Price and Consensus

Nucor Corporation price-consensus-chart | Nucor Corporation Quote

 

Zacks Rank & Other Key Picks

Nucor currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. (ATI - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .

Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40.4% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 11.9% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 16.7% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 34.9% in a year. The company flaunts a Zacks Rank #1.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nucor Corporation (NUE) - free report >>

ATI Inc. (ATI) - free report >>

Cabot Corporation (CBT) - free report >>

Nutrien Ltd. (NTR) - free report >>

Published in