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Nucor (NUE) Stock Falls Amid Market Uptick: What Investors Need to Know

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Nucor (NUE - Free Report) ended the recent trading session at $166.81, demonstrating a -1.21% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.56%.

The the stock of steel company has fallen by 2.92% in the past month, lagging the Basic Materials sector's gain of 4.25% and the S&P 500's gain of 5.06%.

Investors will be eagerly watching for the performance of Nucor in its upcoming earnings disclosure. The company is expected to report EPS of $3.13, down 46.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.16 billion, down 14.31% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.57 per share and a revenue of $31.69 billion, indicating changes of -30.17% and -8.71%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Nucor. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. Right now, Nucor possesses a Zacks Rank of #3 (Hold).

Investors should also note Nucor's current valuation metrics, including its Forward P/E ratio of 13.43. This expresses a premium compared to the average Forward P/E of 10.95 of its industry.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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