In the latest trading session, Nucor (NUE) closed at $114.05, marking a -1.07% move from the previous day. This change lagged the S&P 500’s 0.03% loss on the day.
Prior to today’s trading, shares of the steel company had gained 13.56% over the past month. This has outpaced the Basic Materials sector’s loss of 2.44% and the S&P 500’s gain of 3.59% in that time.
Investors will be hoping for strength from NUE as it approaches its next earnings release. On that day, NUE is projected to report earnings of $6.52 per share, which would represent year-over-year growth of 934.92%. Our most recent consensus estimate is calling for quarterly revenue of $9.9 billion, up 100.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.33 per share and revenue of $34.96 billion, which would represent changes of +478.74% and +73.6%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NUE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 10.83% higher. NUE is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, NUE is holding a Forward P/E ratio of 5.96. Its industry sports an average Forward P/E of 4.75, so we one might conclude that NUE is trading at a premium comparatively.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.