In the latest trading session, Nucor (NUE) closed at $266.35, marking a +2.09% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.5% for the day. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.
Coming into today, shares of the steel company had gained 12.05% in the past month. In that same time, the Basic Materials sector lost 6.25%, while the S&P 500 lost 0.23%.
The upcoming earnings release of Nucor will be of great interest to investors. The company is predicted to post an EPS of $4.46, indicating a 71.54% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.79 billion, indicating a 15.82% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.29 per share and a revenue of $37.25 billion, indicating changes of +98.31% and +14.63%, respectively, from the former 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 a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 4.3% higher. As of now, Nucor holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Nucor is holding a Forward P/E ratio of 17.07. Its industry sports an average Forward P/E of 14.73, so one might conclude that Nucor is trading at a premium comparatively.
Also, we should mention that NUE has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Steel – Producers industry stood at 0.52 at the close of the market yesterday.
The Steel – Producers industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries.
