Nucor (NUE) Increases Yet Falls Behind Market: What Investors Need to Know

In the latest market close, Nucor (NUE) reached $163.22, with a +0.6% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.37%.

The steel company's stock has climbed by 6.07% in the past month, exceeding the Basic Materials sector's gain of 2.76% and the S&P 500's gain of 4.39%.

Market participants will be closely following the financial results of Nucor in its upcoming release. It is anticipated that the company will report an EPS of $3.09, marking a 36.81% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.52 billion, down 13.85% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.94 per share and a revenue of $34.53 billion, representing changes of -37.69% and -16.83%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nucor. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has shifted 0.65% upward. Nucor is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Nucor currently has a Forward P/E ratio of 9.04. For comparison, its industry has an average Forward P/E of 8.28, which means Nucor is trading at a premium to the group.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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