Nucor (NUE) Stock Drops Despite Market Gains: Important Facts to Note

Zacks Equity Research
3 min read
0
In this article:

In the latest trading session, Nucor (NUE) closed at $192.11, marking a -0.98% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.

The steel company's shares have seen an increase of 2.22% over the last month, surpassing the Basic Materials sector's gain of 0.24% and the S&P 500's loss of 0.9%.

Investors will be eagerly watching for the performance of Nucor in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 22, 2024. In that report, analysts expect Nucor to post earnings of $3.62 per share. This would mark a year-over-year decline of 18.65%. Alongside, our most recent consensus estimate is anticipating revenue of $8.04 billion, indicating a 7.68% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $13 per share and a revenue of $32.07 billion, signifying shifts of -27.78% and -7.63%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Nucor. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% lower. Nucor is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Nucor is at present trading with a Forward P/E ratio of 14.93. For comparison, its industry has an average Forward P/E of 10.44, 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 180, putting it in the bottom 29% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nucor Corporation (NUE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement

Recommended Stories

  • Analyst revamps Nvidia stock price target ahead of earnings

    Here's what could happen next to Nvidia's shares

  • Super Micro Computer (SMCI) Q3 Earnings Beat Estimates

    Super Micro (SMCI) delivered earnings and revenue surprises of 15.05% and 2.89%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?

  • Traders Expect Biggest Fed-Day Move in S&P Since 2023, Citi Says

    (Bloomberg) -- The options market is more concerned about a potentially big move in the S&P 500 Index off of the Federal Reserve’s interest-rate decision Wednesday than it’s been at any point in almost a year. Most Read from BloombergTesla Axes Most of Supercharger Team in Blow to Other AutomakersHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsWall Street Hit by Fed Jitters to Close Wild April: Markets WrapTraders Expect Biggest Fed-Day Move in S&P Since 2023, Citi SaysPot Stocks Surg

  • Super Micro Sales Fail to Clear High Investor Expectations

    (Bloomberg) -- Super Micro Computer Inc. reported quarterly sales that tripled from the same period last year but fell slightly short of estimates, disappointing investors who had sky-high expectations that the server maker’s business would benefit from AI-related demand.Most Read from BloombergTesla Axes Most of Supercharger Team in Blow to Other AutomakersHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsWall Street Hit by Fed Jitters to Close Wild April: Markets WrapTraders Expect Bi

  • Why I Just Bought More of This Magnificent 5.7%-Yielding Dividend Stock (and Why I'll Continue Buying in May)

    I've been buying shares of Realty Income hand over fist this year.

  • Tesla stock drops as Elon Musk reportedly announces hundreds more layoffs including senior execs

    The drop pared some of the gains from Monday's session, which saw the stock jump on optimism around Musk's China visit.

  • Massive News for Intel Stock Investors

    Intel is making huge strategic changes that investors need to know about.

  • Here's How Many Shares Of AT&T You Would Need To Earn $100 Per Month In Dividends

    AT&T Inc. (NYSE:T) has long been a favorite among income-seeking investors due to its attractive dividend yield. For those looking to generate passive income from their investments, AT&T’s quarterly dividend of $0.2775 per share and 6.63% yield make ...

  • Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

    The aggressive growth investor added to these three existing positions on Monday.

  • Trump raises stake in his media firm to nearly 65%

    The former U.S. president and Republican presidential candidate secured 36 million shares of Trump Media & Technology Group (TMTG), increasing his stake from 57.6% as of March. Reuters reported last week that Trump would secure a stock bonus worth $1.3 billion from TMTG, equivalent to about half the majority stake he already owns in it, thanks to the wild rally in its shares. The bonus also reflects the exuberant trading in TMTG's shares, which have been on a roller coaster ride since the company listed on Nasdaq last month through a merger with a special purpose acquisition company (SPAC) and was snapped up by Trump supporters and speculators.