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Trade of the Day: Nucor Corporation (NUE) Stock Still Looking Strong

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Nucor Corporation (NYSE: NUE ) - Nucor Corp is the largest minimill steelmaker in the U.S., with one of the most diverse product lines of any steelmaker in America. Its management's goal is to add product breadth and, through acquisitions, enhance its product line to meet the needs of the construction and infrastructure markets.

Standard & Poor's points out that the company's strong balance sheet and cash flows are this company's advantage in what is a competitive market. Longer term, S&P forecasts a rise in earnings based on better U.S. economic growth, strong automotive demand, a recovery in non-residential steel demand, and better control of raw material costs.

I last reviewed Nucor on Jan. 5 , recommending a buy at $61 for a trade to $73. On Jan. 31 S&P renewed its 12-month target price at $75. They increased their 2017 earnings per share estimate by 30 cents to $3.70 and started their EPS estimate for 2018 at $4. They noted that NUE posted Q4 2016 EPS of 43 cents, which was 8 cents above the Capital IQ consensus, noting that NUE also beat revenue estimates by 2.9%.

S&P concluded their notes by pointing out that this company should benefit from strong nonresidential construction demand, an increase in automotive demand and renewed growth from the energy end-markets areas.

Following the presidential election and the new administration's emphasis on growth of the nation's infrastructure, NUE's stock broke from a consolidation with support at its 200-day moving average at under $50 to a high in December at $68. Since then, the stock has been consolidating its gains at roughly November's breakout high at $58.53.

Broad accumulation between $58 and $65 marks the months of February and March. A support zone at $58.53 to $60.91 presents an excellent support zone in which to place limit buy orders. However, traders should consider any opportunity to purchase this quality stock under $61 since the trading target is $73.

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The post Trade of the Day: Nucor Corporation (NUE) Stock Still Looking Strong appeared first on InvestorPlace .

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


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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